LONDON Elektron Instruments Ltd. (Torquay, U.K.) are reported to have handed letters to some staff members yesterday (Thur 29, Oct) at its Woodland Road facility about redundancies at the site.
The South Devon Herald Express reports that “some shop floor and office staff have been told to return to work on Monday to complete their notice period.” It is understood the 60-day consultation period ended yesterday.
The firm, which took over the former Sifam Instruments two years ago, underwent a reorganisation of its meter and control knob manufacturing sections in September. Sifam's brand covers analog meters and control knobs.
A year ago Elektron plc said that the acquisition of Sifam had boosted its sales but the company had moved production of switches from anorher subsidiary to China.
Earlier in October 2009 Electron plc has reported that Elektron Instruments has sales of £2.6 million and an operating loss £0.3 million in the half year to the end of July. At the time it said the Sifam branded products are being transferred to Elektron Components Division (ECD) and will be reported as part of that division in the full year results.
The group's results for the half-year ended July 31, 2009 showed revenue 27 percent lower at £14.2 million while gross profit margin increased to 36.4 percent (July 2008: 34 percent), driven by continued focus on costs and higher margin sales.
Loss were £0.4 million after tax and following exceptional charges relating to cost cutting. The company said it was placing emphasis on building sales in growing economies of China and Brazil and had strengthened its technical selling resource in U.S.
It was continuing to evaluate potential acquisition opportunities that would add scale and value.
Elektron plc designs and manufactures engineered products for industrial users and the distribution market. It operates worldwide and employs over 900 people in five countries.
Chairman Keith Daley said in the first six months of the current year it had continued to see some of the most challenging conditions that the group has faced for many years. Nevertheless, our prompt reactions in cutting costs and focussing on higher margin business, have ensured that we made operating profits before exceptional charges.
Daley added that an important part of the group's strategy is to manufacture in lower cost countries such as China and Tunisia and that it is currently examining a third location for manufacturing.