LONDON (Alliance News) - John Lewis of Hungerford PLC saw its shares drop more than 11% Tuesday morning, after the company unveiled plans to change its name and reorganise its business into two divisions.
The kitchen and furniture designer and manufacturer said it plans to change its name to Grove Oxfordshire PLC, and set up two new operating divisions - John Lewis of Hungerford Ltd and Artisan Installation Company Ltd.
The group's manufacture, retail and installation activities are currently undertaken within a single company structure.
It acquired the Artisan Installation business back in 2009, a service which provides a one-stop-shop to its customers for the purchase and installation of their kitchens. The business has been a key growth driver in recent years for the group.
However, the company said Tuesday that it has identified an opportunity to significantly develop the business through offering an outsourced installation service in partnership with third party retailers, service providers and the consumer directly.
"The board recognise that the John Lewis of Hungerford brand is synonymous with its manufacture and retail operations and therefore to assist in the effective external marketing of both businesses it intends to undertake these through newly incorporated and wholly owned subsidiaries," the company said.
Back in June, the group warned that its operating profit for the financial year ending August 31 will be lower as it invests in new showrooms.
John Lewis of Hungerford shares were down 11% at 1.38 pence Tuesday morning.
The company said it is changing its name to Grove Oxfordshire to reflect the location of its head office at Grove Technology Park in Wantage, Oxfordshire.
It said it will hold a general meeting on September 3 to gain approval for the name change from its shareholders.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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