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Expansion will Tarmac figures hit by

3rd October 1996, Page 10
3rd October 1996
Page 10
Page 10, 3rd October 1996 — Expansion will Tarmac figures hit by
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costs of Wimpey cuts

• Tarmac's pre-tax losses increased by 260% in the six months to June 1996 as the £65m costs of its Wimpey rationalisation programme hit home.

The major costs involved the closure of offices duplicated since its March merger with Wimpey and redundancy payments to more than 1,400 administrative staff.

However, chief executive Neville Simms says the cuts will save the business £38m a year, instead of the £20m originally forecast. Tarmac is likely to cut more costs as it tries to reduce debts brought on by the 34 office closures, hut a spokesman says: "It shouldn't affect large numbers of tipper drivers. We still need the same number of quarries and the same number of drivers."

Simms says more work from the Government's private finance initiative and growing construction demand from industry should improve results.

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