Brown & Tawse restructuring to cut losses
Saturday 27 March 1993
The company said losses would be worse than expected for the year to 31 March at pounds 8.9m, and that the restructuring would cost an additional pounds 10.9m.
Under the plan devised by Richard Wilson, the new chief executive, Gilbert Black, chairman, is to be replaced by Donald McFarlane, chairman of Senior Engineering, and James Dickie. Mr Wilson was brought in from GKN in October with a brief to turn around the company, which lost pounds 2.8m in the six months to 30 September.
His restructuring also involves bringing in new management, selling non-core activities and rationalising the distribution network.
Mr Wilson said the plan would lead to between 150 and 200 job losses, bringing the total number of employees down to about 1,000. 'We've got to enhance margins through better buying and more aggressive selling,' he said.
Cost savings of pounds 4.5m in a full year and margin enhancement of pounds 2.5m over two years were expected, he said.
The pounds 10.9m provision is to cover the pounds 5m costs of decommissioning the group's computer system and property write-downs.
The group's borrowings will stand at 85 per cent of the pounds 24m net asset base after the restructuring. Mr Wilson said the company's bankers had approved the shake-up and the company would not need fresh finance.
The shares fell 2p to 61p.
Olympic diver has made his modelling debut for Adidas
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing the result either way
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Alan Henning: British Muslim leaders unite to call on Isis to release UK hostage
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...