Leeds-based digital and IT consultancy Answer Digital has passed into employee ownership, with founders Gary and Kate Parlett saying they passed up eight-figure offers from venture capitalists to make the move.
Answer Digital, which also has an office in London, was founded 21 years ago and has clients including the NHS, international retailers and global financial institutions.
Its 85 staff will each have ownership in the business through an employee ownership trust. The trust’s board will have a direct say over the operation of the business.
The Parletts will continue in their roles “to actively support the business”, while senior members Richard Pugmire, Nigel Garner and Richard Ellis will join the Board. The deal, for an undisclosed sum, will be funded by the business.
Technology advisor Finbarr Joy has re-joined the business as a non-executive director, having first worked at Answer Digital 20 years ago before taking senior technology roles at BT and William Hill.
The company is forecast to have a £9m turnover in 2020.
Gary Parlett, founder and managing director of Answer Digital, said: “We have grown a team that is respected across the industry as original thinkers that put innovation and a desire to deliver exemplary work at the heart of everything they do.
“To support the team and create a platform for what comes next, we have decided to move Answer Digital to employee ownership. It means everyone will have a stake in building a sustainable business that has the freedom to do great work.
“Typically, employee-owned businesses have higher productivity, greater levels of innovation and are more resilient to economic headwinds. The people that work in them are often more engaged, happier in their jobs and less stressed.
“We believe that employee ownership can answer some of the big questions we are facing as a society and an economy. We need to address the balance between work and reward and unite people behind a common purpose.
“We are passionate that this is the best route for our business to continue to grow and deliver award-winning solutions.”
“Putting our people and their development at the core of our business has been a key factor in us to be named the ‘Highest performing in the UK’ by industry analysts Megabuyte in January. In the fast-moving world of digital consulting, we will continue to challenge the norm.
“When we first launched the business it was called the Ultimate People Company, and now we have the opportunity to live up to that promise.”
