Limelight to axe jobs after shares fall
The redundancies are part of a bid to placate shareholders, who have seen their investment collapse just months after founder Stephen Boler netted pounds 60m from the flotation. Limelight also spelt out a list of management actions to put the company back on track.
Speaking after the company announced increased profits for the year to December, Ashley Lewis, finance director, said there was no question of either Cazenove, Limelight's broker, or its sponsor, NM Rothschild, resigning over the affair. The collapse of the share price, from a peak of 200p shortly after a placing at 175p to yesterday's 94.5p, comes as a serious embarrassment to the two blue-chip firms.
Mr Lewis said sales had dropped dramatically in January after buoyant sales in the run-up to Christmas. He could think of no substantive reason for the fall-off in demand, except that potential windfalls from a raft of building society flotations had locked up the money that might otherwise have been spent on big ticket items such as fitted kitchens, bathrooms and conservatories.
In the year to December Limelight bounced back into the black, reporting pre-tax profits of pounds 2.84m compared with a pounds 1m loss in 1995. The profit was struck from sales of pounds 171.6m, up from pounds 133.9m the previous year. As projected at the time of flotation, there was no dividend.
Mr Lewis said Limelight was investigating outsourcing various internal functions such as warehousing and distribution in order to cut costs. He said the company was also planning to sell other new but related products through its showrooms including kitchen stools, towels and rattan furniture, and to contract manufacture for an unnamed national distributor.
- 1 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 2 50 books for students to read this summer: From Ernest Hemingway to Gillian Flynn
- 3 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Joey Barton and Yossi Benayoun become involved in Twitter row over Israel-Gaza conflict
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Metallica drummer Lars Ulrich claims Noel Gallagher helped him kick his cocaine addiction
Peaches Geldof: Her final day – and her fatal decision
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Students offered grants if they tweet pro-Israeli propaganda
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...
£18000 - £25000 per annum + OTE £40,000: SThree: Huxley Associates are looking...
Negotiable: Harrington Starr: Graduate C# Developer (.NET, ASP.NET, HTML, SQL,...