Integrator Morse has announced a cost reduction programme which it has claimed will result in a one-off charge of around £4m to £3.5m.

According to a statement released to the city today, the firm will record the charge in its financial year ending 30 June 2009, and expects to recoup the costs in less than a year from the launch of the programme.

A fortnight ago, the firm revealed it would be ‘simplifying’ its business by dividing into five units comprised of: Investment Management Consulting, Business Applications, Services Infrastructure Services and Technology - UK, Infrastructure Services and Technology – Spain, and Infrastructure Services and Technology - Ireland. It claimed the move would allow each unit to focus on its core competencies (Channelweb, 8 July)

Kevin Loosemore, executive chairman of Morse said in a statement: “In our pre-close trading update earlier this month, we announced a simplification of our structure and a continued commitment to improving our profit margins. In working towards this, we have identified the potential to reduce our fixed costs while still supporting our future prospects.”

Loosemore said the programme will start immediately, with more details being made available when it announces its preliminary results on 9 September.