Morse unveils restructuring plans in year-end update

Integrator's new chief executive reveals in pre-close trading update that firm will reorganise into five business units with immediate effect

Evaluatiing the company: Morse has been reviewing its operations

Morse is undergoing a restructure in a bid to simplify the company, and focus on core competencies.

New chief executive Kevin Loosemore, who replaces Kevin Alcock with immediate effect, revealed that the firm has reviewed its operations as economic conditions continue to be difficult.

In a statement, he said: ""Over the past few months, in a deteriorating business climate we have undertaken a review of the company’s operations. The Board has concluded that the structure of the Group needs to be simplified to allow the individual business units to concentrate on their core competencies. With immediate effect Morse will operate as five businesses each of which will be reporting to me."

The five businesses comprise: Investment Management Consulting, Business Applications Services Infrastructure Services and Technology - UK, Infrastructure Services and Technology - Spain and Infrastructure Services and Technology - Ireland.

Morse's trading update also revealed that its full year 2008 turnover will be lower than 2007. The firm attributed this to 'some deterioration' in short term services in the final quarter of the year as clients reduce 'discretionary' spend.

However despite the drop, revenues in the second half of the year were higher than the first half, and although profit was lower in the final six months of the year, overall it will be similar to 2007, Morse said.

"The balance of our business between technology and services has remained farily constant, which together with continued project issues and weaker performance in Spain, means that we have not seen the improvement in operating margins that had been planned," the statement added.