Pay cuts for all imposed by Harland

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The Independent Online
HARLAND SIMON, the controls systems company whose shares are suspended, has made pay cuts of between 10 per cent and 33 per cent across the group, writes John Murray.

A spokesman said the action was taken 'within the last week' in an effort to curtail costs while the group continues talks with Barclays, its principal banker.

He said the pay cuts would probably not last more than three months. They were implemented on a sliding scale, with only directors and other high earners losing 33 per cent.

Harland asked the Stock Exchange to suspend trading in its shares a fortnight ago - 'pending clarification of the company's financial position' - after Barclays refused to release the pounds 8.1m proceeds of a disposal. The group's pounds 15m overdraft was about twice the size of its last declared net assets.

The shares stood at 20p at suspension, against a high this year of 655p. Harland has suffered since an unexpected profits warning in February, followed by the resignation of the chairman, Roy Ashman, qualified accounts, a pounds 6.4m loss and a Stock Exchange inquiry.