14th Feb 2017 08:05
LONDON (Alliance News) - Pebble Beach Systems Group PLC on Tuesday said it has launched a major cost reduction strategy that will see the company close its head office and sack a number of staff members, including Executive Chairman John Hawkins.
Pebble Beach Systems changed its name from Vislink earlier this month following the sale of its hardware division. That sale, plus a deal in October to offload its Communications Systems business, left it focused on its Pebble Beach automation and content management unit.
The company recently warned that a decline in performance in the Communication Systems business had weighed on its overall 2016 results and said its Pebble Beach unit had also performed slightly below expectations.
As a result, results for 2016 are expected to be materially weaker than prior expectations.
On Tuesday, Pebble Beach said it is pursuing a cost reduction strategy that will involve the closure of its head office. The company said the head office was no longer appropriate following the asset sales, with operations continuing from one single site where the one remaining subsidiary, Pebble Beach Systems Ltd, operates.
The service contract with Executive Chairman John Hawkins has also been terminated, with six head office staff also losing their jobs as part of the programme.
Current Non-Executive John Varney will become the company's non-executive chairman, supported by the other two non-executives on the board, Pebble Beach said.
Full year results will be posted on the last day of March.
"There has been no change in the banking situation since the announcement of February 6. Following the most recent meeting with the bank on February 13, 2017, the bank remains supportive of the company," said Pebble Beach.
By Joshua Warner; [email protected]; @JoshAlliance
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