LONDON (Alliance News) - Corac Group PLC said Tuesday that it will be closing its Slough technology centre, which it expects to lead to a GBP900,000 exceptional charge offset by GBP500,000 in cost savings in the current year.
It expects the decision to streamline its operations to reduce overheads by around GBP700,000 annually from 2016. It will exercise an early break clause in the lease, with the exit from the Slough facility planned for the second quarter of 2015.
It will instead carry out production and workshop activities from its two centres in Greater Manchester and Portsmouth, and its technology design and development team will be relocated to a new site outside of London.
"It is anticipated that these initiatives will enable the business to benefit from future cost synergies, whilst ensuring it has a sustainable operational footprint capable of supporting a number of ongoing organic growth opportunities. They also create a strong platform for integrating potential bolt-on acquisitions," the company said in a statement.
Shares in Corac are trading down 5.9% at 4.00 pence Tuessday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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