Call centre firm LBM slashes 20% of staff

DIRECT marketing and call centre business LBM saw slashed jobs as losses widened last year.

The company, which is controlled by Isis Equity Partners, suffered an 18.5% slump in sales to £44.7m in the year to May.

Pre-tax losses grew from £4.2m last time to £6m according to newly-filed accounts.

The Altrincham-based firm, established by entrepreneur Paul Beck in 1996, was forced to cut 570 staff – or a fifth of the workforce – during the year taking its average number to 2,166.

The directors’ report accompanying the accounts does not detail the reasons behind the increased losses and the staff cuts. Investment managers at Isis could not be reached for comment.

It counts a range of high profile businesses as its clients, including Vodafone, Orange, Rentokil and EDF Energy.

LBM was set up by Mr Beck and his business partner Tim Baldwin in a Cheshire barn and has grown to become one of the biggest direct marketing businesses in the UK. Isis bought a controlling stake from Mr Beck in 2004.