Morse announces £4.5m cost reduction programme

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Morse announces £4.5m cost reduction programme

Simon Quicke

Morse will embark on a cost reduction programme that is aimed at reducing fixed costs but will produce a one off charge of £4m to £4.5m that will be recorded in its next financial year.

The company announced the move to the City and expected the charge to be covered by savings in the space of a year.

Kevin Loosemore, Executive Chairman of Morse, said that it had simplified its business structure already earlier this month and that was the platform to help produce further savings.

"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," said Loosemore.

"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," he added.

Earlier this month Morse revealed that revenues for the fiscal year are likely to be below 2007.

This led to immediate departure of chief exec Kevin Alcock and a restructure of the business into five divisions - Investment Management Consulting, Business Application Services and Infrastructure Services in the UK, Spain and Ireland.

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