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Redstone cuts deliver bottom line savings

Simon Quicke

The cost reduction programme at Redstone is having a positive impact with the firm making a sizable reduction in its pre-tax losses and operating expenses.

The networking solutions specialist's report for its last financial year, ended 31 March, showed a 41% reduction in pre-tax losses to £6.6m and a 19.1% reduction in operating losses to £5.3m.

In order to trim its costs staff numbers have been cut in half with 413 left from the 860 who were there in March 2010, which was part of an intensive seven month period of reorganisation.

"Almost inevitably during a period of fundamental change, the performance of the business becomes adversely impacted by the associated uncertainty and diversion, the impact of which is felt by our clients, suppliers, management and staff," stated Ian Smith, executive chairman at Redstone.

"However, we come out of this process a leaner, more efficient, focused and integrated business. As a result we now have a clear strategy to position Redstone to become the largest mid-market provider of end-to-end managed services, technology and infrastructure solutions, delivering customer applications over leading edge technologies across Redstone's own high speed resilient network," he added.


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