Eurovein woe continues
Wednesday 17 May 1995
Don Stain, group managing director, is leaving as part of a management shake-up and big restructuring, but the company would still make a loss this year and was unlikely to pay a final dividend.
Sir James McKinnon, the chairman and former director general of gas watchdog Ofgas, said he believed re-organisation should return the group to profitability next year.
Eurovein was floated last November at 141p a share, but the price fell to 86p in February when the company warned that sales and order had fallen short.
Yesterday, the shares fell from 70p to 38p as Sir James revealed continuing problems throughout the group and the prospects of big restructuring costs.
Faulty work on a contract for a German customer meant additional costs to put it right, while costs on installing machines in the Far East have risen.
Mr Stain is leaving with immediate effect, and Graham Ward, a director in the surface treatment division, has also left. He will be replaced by Stuart Cole, finance director.
An operations director from outside the group is being appointed to the UK subsidiary. The surface treatment divisional head office in Rotherham will close and the engineering activity in the German subsidiary will be transfered to the UK, leading to job losses. An operation will remain in Germany to concentrate on sales, spare parts and service.
In the filtration division, which makes gas and liquid filters, one of the product lines has been withdrawn. "This, together with generally disappointing sales levels, will mean a reduction in staff at the French subsidiary,'' Sir James said.
He added that trading in the components division and in the Italian surface treatment subsidiary was satisfactory. "Margins throughout the group were in line with expectations,'' he said.
He said further delays in orders would affect total sales for the year, and restructuring charges would lead to a pre-tax loss for 1995. Last month, the company announced first quarter pre-tax profits of £221,000, on turnover of £8.6m. Eurovein is one of several companies to hit problems soon after flotation.The company was built from the wreckage of the collapsed Tyzack group.
- 1 Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
- 2 The secret report that helps Israelis to hide facts
- 3 Danish TV reporter is all business up top, all party down below
- 4 Ross Burden dead: MasterChef and Ready Steady Cook star, dies aged 45
- 5 Businessman charged £75 for three small bottles of water in London hotel
The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
iJobs Money & Business
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£350 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...
£500 - £560 per day: Orgtel: Java Developer FX - Banking - London - Up to £560...
£350 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...
£26000 - £30000 per annum + Benefits: Ashdown Group: Account Manager - (Produc...