News
Cost reduction programme announced
[25-07-2008]
Embargoed for release Friday 25 July at 7.00 am
Cost reduction programme announced
Morse plc ("Morse", "the Company" or "the Group"; LSE: MOR.L) announces a cost reduction programme.
Since its pre-close trading update on 8 July 2008, the Board has identified a number of potential cost savings. The cost reduction programme is expected to result in a one-off charge of approximately £4m - £4.5m which will be recorded in the financial year ending 30 June 2009. The Company anticipates recouping these costs in less than one year from the launch of the programme.
The cost reduction programme, which starts immediately, has been designed to improve overall returns, while maintaining the fabric of the business and the Company's sales and delivery capability.
Kevin Loosemore, Executive Chairman of Morse, commented:"In our pre close trading update earlier this month, we announced a simplification of our structure and a continued commitment to improving our profit margins. In working towards this, we have identified the potential to reduce our fixed costs whilst still supporting our future prospects.
We will begin implementation of the programme immediately and will provide further details at the preliminary results which are expected to be announced on 9 September 2008"
Morse plc Tel: 020 8380 8000
Kevin Loosemore
Eric Dodd
Financial Dynamics Tel: 020 7831 3113
Harriet Keen
Haya Chelhot