Strategic Changes At Servoca
Servoca Plc, the specialist public sector outsourcing and recruitment solutions provider, has announced the implementation of the final stage of a major restructuring and cost reduction exercise following significant growth and corporate activity. This encompasses Restructuring, cost reduction and the elimination of loss making activities.
Following the significant organic and acquisitive growth during the 12 months to 30 September 2008, the board have streamlined the Group ensuring that a clear and more efficient structure is in place for the new financial year which commenced on 1 October 2008. The various measures taken by the board include
- The revision of the Groups management structure and streamlining of operational management
- Simplification of the Groups corporate structure and reporting lines
- Restructuring of two healthcare and training subsidiaries
- The continued rationalisation of front and back office systems across the Group
- A reduction in the number of administrative and operational staff
- The reduction in general overhead expenditure.
As a consequence of the above exercise, the Group has incurred significant exceptional and restructuring costs and thus will not achieve market expectations for the year ended 30 September 2008, but will incur a loss for the year.
Servoca is now trading profitably and is benefiting from the restructuring and cost cutting exercise, which has reduced the Groups ongoing cost base by an approximately 1.5 million per annum.
The company has also announced that Darren Browne, the Groups chief executive officer has resigned from the board and it is pleased to announce the appointment of Andrew Church, as the Groups new Chief Executive Officer with effect from 24 November 2008. Andrew was formerly a main board director of Lorien PLC and Managing Director of its profitable resourcing division, which he grew to an annual turnover of 185m.