31st May 2007 07:02
SMC Group Plc31 May 2007 SMC Group Plc (the "Group") Review Update and Directorate Change Following the trading statement made on 25 May 2007, SMC Group Plc gives thefollowing update to shareholders regarding the findings of the recent internalbusiness review. The review confirmed the preliminary view of the Board as announced to themarket on 25 May 2007. The review provided a series of recommendations to improve the profitability ofthe Group including the way the Group approaches the winning and execution ofprojects, the management structure, resourcing and the cost base of somebusiness units. The Board has approved decisive action by agreeing to implementthe recommendations of the review immediately. Whilst some businesses within the Group continue to trade well, others haveoverheads which are out of line with revised revenue projections. The cost basein these businesses will be reduced at the earliest opportunity and this mayinvolve integration with other parts of the Group or closure of offices. Following the Board meeting Stewart McColl has resigned as Executive DeputyChairman and has left the Group with immediate effect. Gordon Watson has also stepped down from the Board with immediate effect butwill continue working in a business development role in the Company The Group's bankers have confirmed they continue to be supportive of the Groupin order to facilitate the changes required by the review. As stated in the announcement of 25th May, Sir Rodney Walker, ExecutiveChairman, is determined that these changes and the implementation of the strongaction recommended by the review will enable the Group to improve its financialperformance to a level where month-by-month results are in line with the Board'srecent expectations. -ends- For further information: Bell Pottinger Corporate & Financial Tel:+44 (0)20 7861 3232David Rydell/Chris Hamilton Numis Securities Tel:+44 (0)20 7260 1000James Serjeant This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ARL.L