British architecture firm jmarchitects has successfully transitioned to an employee ownership model, giving all 100 of its staff members an indirect stake in the company through a trust structure. The move affects employees across the firm's four offices in Edinburgh, Glasgow, Manchester, and London, marking a significant shift in the company's ownership structure.
The Employee Ownership Trust (EOT) model, which is becoming increasingly popular for managing business succession in the UK, offers substantial financial benefits to staff members. Under this arrangement, employees can receive profit-related bonuses of up to £3,600 per year per employee, with these payments being exempt from income tax. This structure provides both financial incentives and a greater sense of ownership among the workforce.
jmarchitects joins a growing list of prominent architectural practices that have adopted the employee ownership model in recent years. Notable firms that have made similar transitions include Zaha Hadid Architects, HawkinsBrown, Studio Egret West, Purcell, Assael, 7N, and ACME. This trend reflects the architecture industry's recognition of the value that employee ownership brings to creative professional services.
The firm, which ranks 42nd in the AJ rankings of the UK's largest architectural practices, celebrated its 63rd anniversary this year and maintains an annual turnover of approximately £8 million. The company has built a diverse portfolio spanning education, healthcare, housing, office, and cultural projects throughout the United Kingdom.
Currently, jmarchitects has an impressive pipeline of major projects across the country. These include a substantial £250 million town center regeneration project in Wigan, the Church Wharf mixed-tenure housing development masterplan in Bolton, and the £30 million Alton Road extra-care and social housing project in Roehampton, southwest London.
Managing Director Brian Thomson described the transition as representing "the next phase in the evolution of our practice." He explained that the firm was "established originally as a partnership, then becoming a limited company and now an EOT [employee ownership trust]." Thomson emphasized that they view "this model as an ideal opportunity to develop our leadership team and reward all our extraordinary staff while continuing to deliver excellence in architectural services for our clients and produce the very best spaces and places that inspire and delight."
The company is experiencing growth across multiple sectors, with Thomson noting continued expansion "in the residential sector, including all tenures along with purpose-built student accommodation, build-to-rent and hotels." In the commercial sector, workplace refurbishment projects have become a significant portion of the firm's turnover, allowing them to integrate both their architectural and interior design capabilities.
Thomson highlighted that clients consistently demand "creative, innovative and cost-effective solutions that provide value for money alongside a significant uplift in the sustainable credentials of their assets." This focus on sustainability and value reflects current market demands in the architecture industry.
Nicholas Howie, a partner in the corporate law team at solicitors Lindsays, served as one of the key advisers supporting jmarchitects through its EOT transition. Howie explained the advantages of this model, stating: "There are very real advantages for a practice like this, where the talent and commitment of its people is key to its success and future, becoming an EOT."
According to Howie's experience with other firms that his team has supported, "an EOT attracts high-caliber people while also retaining talent within the business and retaining the firm's independence." He emphasized that "employee ownership offers considerable opportunities for professional services businesses of all kinds to make their businesses stronger and more sustainable in a financially-efficient and attractive way."
The transition to employee ownership represents a strategic move that positions jmarchitects to better compete for talent while maintaining its independence and fostering long-term sustainability. This approach aligns with broader trends in the professional services sector, where firms are increasingly recognizing the value of giving employees a direct stake in the company's success.
