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.
- 1 King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
- 2 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Presidential optical illusion offers clues to how brain processes faces
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ukip Jelly Babies cause uproar on Amazon
Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...