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21 Nov 2008 12:05
SERVOCA PLC
("Servoca" or "the Group")
Trading Update and Board Change
Servoca Plc, the specialist public sector outsourcing and recruitment solutions provider, announces the implementation of the final stage of a major restructuring and cost reduction exercise following significant growth and corporate activity.
Restructuring, cost reduction and 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 Group's management structure and streamlining of operational management;
- Simplification of the Group's 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 Group's ongoing cost base by approximately £1.5 million per annum.
Board Changes
Servoca also announces that Darren Browne, the Group's Chief Executive Officer has resigned from the board.
Servoca is pleased to announce the appointment of Andrew Church, 36, as the Group's 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.
Andrew Mark Victor Church holds or has held the following directorships within the past 5 years:
Current Directorships :
None
Previous Directorships :
Lorien PLC
Lorien Holdings Limited
There are no other disclosures pursuant to paragraph (g) of Schedule 2 of the AIM Rules for Companies.
Bob Morton, Servoca's Chairman commented
"The cost cutting exercise and the restructuring of the Group have returned Servoca to profitability and strengthened its future prospects.
On behalf of the board, I would like to thank Darren Browne for the substantial contribution he has made in the development of the Group and to wish him well for the future.
I am pleased to welcome Andrew Church, who I worked with at Lorien PLC as the new Chief Executive and look forward to him continuing the growth and development of Servoca Plc to realise its full potential."
Contacts:
Servoca Plc
Bob Morton 07836 528617
FinnCap
Geoff Nash 020 7600 1658
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