Jobs go at ServicePower
STOCKPORT’s ServicePower Technologies, which specialises in outsourced field management, has been forced to shed a third of its workforce.
Chief executive Mark Duffin said “recessionary pressures” had led to the decision to make 47 of the 136 staff redundant. The cost-cutting programme started earlier this year with many of the affected staff staying on until this month.
ServicePower is aiming to cut £2.4m from the wage bill with the redundancy programme which has cost £100,000 to implement.
The group detailed the cuts in its interim figures which show its exposure to fluctuations in the dollar exchange rate contributed to a £2m interim loss at ServicePower Technologies.
The group said it incurred foreign exchange losses of £1.3m due to an unfavourable movement in the dollar exchange rate.
According to unaudited figures the group recorded a pre-tax loss of £2m in the six months to June 30, compared with a loss of £285,000 last time.
Sales came in at £9.4m up by 18% from £8m last time. Its adjusted pre-tax loss, taking these exceptional factors into account, was £600,000.
The group’s restructuring measures involved cutting nearly 50 staff, or 35% of the workforce, with the aim of cutting £2.4m from the wage bill.
Chief executive Mark Duffin said: “This half was a period of evolution and re-focusing for ServicePower. Recessionary pressures caused the board to initiate, and complete post-June 30 2009, a substantial restructuring programme which is expected to result in considerable cost savings for the company and a more suitable cost base going forward.
“We significantly extended our market reach in the period through the signing of a number of new partnerships. This, in conjunction with our reinvigorated sales and marketing focus, has led to solid improvements in our future pipeline and we are delighted to report wins during the period with such well known companies as E.ON and SGS.
ServicePower rebuffed a takeover approach bid last month. Today it said the potential bidder was still reconsidering its position. A further announcement is expected.
The group also announced the appointment of Sally Gillings as finance director with immediate effect. Ms Gillings, previously group financial controller, will take over from Nan Kreamer who stepped down in June.
