ACCORD ENERGY EMBRACES EMPLOYEE OWNERSHIP AS ROUTE TO GROWTH

Accord Energy, a fast-growing Aberdeen-based specialist hydrocarbon accounting business, is embracing employee-ownership to accelerate growth and a move into new markets, including overseas. Launched in August 2010 by three hydrocarbon accounting veterans – Alan Spence, Phil Stockton and James Arthur – the company has grown quickly and has achieved first year turnover of nearly £1m.

Accord’s integrated hydrocarbon accounting solutions help the international upstream oil and gas industry maximise value and minimise value leakage from their production. Their services include allocation engineering, measurement, systems delivery, auditing, operational support and training. The correct allocation and measurement of oil, gas and increasingly, water and carbon dioxide, are central to profitable operations. The company has a growing client list of more than a dozen international oil and gas businesses.

Accord Energy currently employs 16 staff and seven associate consultants, with an additional three staff and three associate consultants set to join in January 2012. Growth is significantly ahead of plan and the business is targeting turnover of £4m by 2013.

The founders determined at the outset that, in order to encourage increased productivity, innovation, and employee engagement, the business would become employee-owned as soon as possible. This process has now been started with the implementation of a Share Incentive Plan which will give employees the opportunity to purchase shares, and to be rewarded for their contribution to the business in a tax effective manner.  Next year the company plans to set up an Employee Benefit Trust, which will ultimately hold at least 51% of the shares.

The transition to employee ownership has been supported and advised by Baxi Partnership and Co-operative Development Scotland (CDS). Baxi Partnership has guided the owners through the transition process and CDS has provided funding for an initial feasibility study and the implementation of the Share Incentive Plan.

Employee ownership will give the business a further competitive edge, says Director Alan Spence: “There is a wealth of evidence now to show that employee-owned businesses are generally more productive, profitable and sustainable. The management team realised that our business would benefit by creating a structure and environment that attracts really talented people and supports and rewards them for helping grow the business. We have been delighted with the response, from both staff and clients, and are confident that employee ownership will be a key factor in our drive to grow the business. 

Glen Dott, Specialist Adviser with CDS, added: “The management team was very supportive of the concept of employee ownership, and has embraced it fully, which has made for a relatively smooth transition. The business has an exciting future under employee ownership and has the potential to grow quickly in an important international market.”

Jacqui Mitchell of Baxi Partnership said: “Accord Energy is an outstanding example of an innovative, entrepreneurial business that is using employee ownership to enhance its competitiveness and differentiate itself in a tough international market. We wish the business and its staff every success.”