Ennstone to cut 10pc of UK jobs in cost saving bid

Aggregates and materials firm Ennstone is to cut 10 per cent of its staff in the UK as it aims to make annualised cost savings of £2 million.
The firm said trading conditions have 'remained difficult' with its businesses in the Midlands and Scottish markets seeing reductions in volume due to the lack of new development and housebuilding activity.

The head count reduction will cost the firm around £750,000 in the current year.

Ennstone has now implemented a series of cost-saving measures as its 'cash position remains under pressure.'

Its asset disposal programme is to continue which aims to reduce its debt burden and discussions are continuing following a preliminary approach for the firm made in September. But the firm said that 'there can be no certainty of an offer being forthcoming.'

In a trading statement for the last quarter Ennstone said: "The groups markets in the UK and US remain difficult and the board does not expect to see any improvement in conditions in the short to medium term.

"Against this background, and with limited visibility of its future order book, it is difficult to predict with absolute certainty, future trading performance.

"The groups focus is now on maximising operational cash flow and working constructively with its finance providers."

The firm has also announced the appointment of executive director Stephen Smith.

Mr Smith will be working with the existing management team to support Ennstone through this period and to secure the future of the business.