Servoca Regulatory News (SVCA)

9 Feb 2007 07:00

Multi Group PLC09 February 2007 Multi Group Plc ("Multi" or "the Company") Restructuring and cost cutting exercise Departure of non-executive director The directors of Multi are pleased to announce the completion of a detailedstrategic review of the business and implementation of a significantrestructuring and cost cutting exercise. As a part of the exercise, the directors have identified and are implementing aseries of initiatives which they believe will strengthen, improve andorganically develop the Group's existing businesses. They believe that as aconsequence the contribution being generated at the branch level will rise. In addition it is intended that the group's central overhead base besignificantly reduced. This will mainly be achieved though a reduction in thenumber of administrative and other non-essential staff but will also entail thedeferral or cancellation of previously budgeted expenditure. It is estimated that as a result of the exercise the benefit to the Group willbe approximately £700,000 in a full year. Multi also announces that by mutual agreement, Diana Cornish, one of the Group'snon executive directors is to step down from the main board at the end of March2007 in order to pursue other business interests. Oliver Cooke, Multi's Executive Chairman commented: "The measures announced will do much to improve the Group's performance and theobjective over the next year is to move the business toward profitable tradingon a stand alone basis. This exercise is separate to and should be further enhanced by the Group'songoing acquisition activity. On behalf of the board I would like to take this opportunity to extend ourthanks to Diana Cornish for the considerable support that she has provided tothe Group and to wish her well for the future." This information is provided by RNS The company news service from the London Stock Exchange