Chief executive Iain Napier, who took over in January, said the cuts would cost £12m but save £21m in 2003 by eliminating duplication and unnecessary management. He said this would rise to savings of £30m by 2004.
Napier said: “Taylor Woodrow had a reputation as being a mini-conglomerate. This will get rid of that. It’s not rocket science. Some other companies did this five years ago and we’re catching up now.”
The group’s administration will be brought together and its housebuilding and property businesses combined and reorganised into 10 regions.
Previously Bryant, the housebuilding business Taywood bought last year, and the group’s two property businesses were run as separate operations, each with their own finance and human resources departments.
Taywood’s construction arm will be kept separate, but Napier wants it to work more for the group’s other operations. The division’s administration will be handled by Taywood’s head office. The group will also move its headquarters from just outside London to Bryant’s base in Solihull, West Midlands.
The shift has led finance director Adrian Auer to leave the group because he does not want to relocate his family. Napier dismissed speculation that boardroom tension was behind Auer’s departure.
Napier said the staff had been told about the changes and redundancies. The first workers will leave next month, with the rest going by the end of the year. Redundancies will cost £10m and office closures another £2m. Taywood will pay the £12m in the second half of this year.
Napier announced the changes as Taylor Woodrow released its results for the six months to 30 June.
Group pre-tax profit rose 4% from £103.8m to £108.1m, while turnover increased £3.6m to £988.3m for the same period last year.
Bryant’s operating profit increased £19.8m from £50.6m to £70.4m with operating margin improving 0.5% to 17.2%. Bryant completed 2476 units compared with 2121 last year.
Taylor Woodrow’s construction business operating profit dropped by £1.1m to £5.3m.
No comments yet