Yorkshire Group PLC
8 January 2002
8th January, 2002
Yorkshire Group plc
REORGANISATION OF UK MANUFACTURING BASE
As envisaged in the trading statement of 30th November, 2001, the Board of
Yorkshire Group plc ('Yorkshire'), the specialist dyes and chemicals company,
announces a further step in its strategic restructuring programme aimed at
reducing the group's cost base in line with expected levels of demand.
The project, which is expected to bring cost savings of around £3 million a
year from early 2003, will affect Yorkshire's two manufacturing sites at Leeds
and will create a highly efficient dyestuff manufacturing plant at its Hunslet
Road site, whilst continuing to use the Kirkstall Road site for strategic
storage, research, technical development and head office.
The exceptional cost resulting from this project is estimated at approximately
£8 million, of which some £6.2 million will be non-cash arising from plant and
stock write-downs, and this will be accounted for in the results for the
financial period ending 31st December, 2001. In addition, the necessary
capital expenditure to facilitate this project is expected to amount to £2.5
million, giving an overall implementation cash cost of approximately £4.3
million. Partially offsetting this cash expenditure will be an expected stock
reduction of approximately £1.6 million arising in 2003.
The detailed consultation, planning and engineering work necessary for a
project of this scale means that the Board of Yorkshire do not expect this
integration to be completed until the early part of 2003. As a result, the
benefits of this restructuring are not expected to be seen in the financial
year ended 31st December 2002.
The group continues to focus upon its strategic objectives and to work
aggressively towards reducing the cost base in line with expected levels of
demand. The Board will update shareholders on the progress of the strategic
restructuring programme at the time of the preliminary announcement of the
2001 results in March, 2002.
Andrew Dick, Chief Executive, Yorkshire Group plc Tel: 0113 2443111
Patrick Toyne Sewell, Citigate Dewe Rogerson Tel: 020 7638 9571