Staveley to cut more jobs and sell division
Thursday 05 June 1997
Roy Hitchens, chief executive of Staveley, said he was pressing ahead with plans to sell the measurement division and hoped to complete a sale by the end of this year.
As part of a move to make the business more attractive to potential buyers, 50 employees in the bagging systems section, Chronos Richardson, are to be made redundant at a cost of around pounds 1m. During a restructuring of the business two years ago nearly 200 jobs were axed.
Mr Hitchens said "between 10 and 20" companies had expressed an interest in Staveley Measurement and more serious discussions would proceed with a few shortly. While he would prefer to sell to a single bidder, he said he would consider breaking up the division.
Chronos Richardson lost pounds 5m in the year to the end of March and dragged profits in Staveley Measurement down from pounds 5.2m to pounds 2.6m.
Group profit before tax for the year to the end of March, announced yesterday, plunged 28 per cent to pounds 16.6m. Besides the problems in the measurement operation, the results were hit by pounds 4.7m of reorganisation costs. Earnings per share fell 40 per cent to 9.8p.
Mr Hitchens said he was optimistic about prospects for the rest of the group, pointing to an agreement signed with United Gas to store natural gas in salt cavities.
Analysts expect the sale of the measurement business to fetch between pounds 30m and pounds 40m but Mr Hitchens did not rule out a rights issue to fund future acquisitions "in the long term".
Some analysts said that while the future did look "more interesting" if Staveley managed to sell the measurement side, the company was looking vulnerable to takeover. The shares dropped 6p yesterday to 166.5p.
- 3 Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
- 5 Ann Summers survey reveals the UK's favourite sex position
Man on naked bike ride gets ejected after becoming aroused
Caitlyn Jenner's mother Ester thought her daughter, formerly known as Bruce Jenner, had transitioned for money
Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...