Sagging CeNes cuts one in four jobs
DRUGS company CeNes has axed more than a quarter of its workers and is to vacate its Cambridge head office as part of a dramatic attempt to save cash.
The group, which employs around 130, has closed its US research facility with the loss of 17 jobs. Another 17 research and administration staff have gone from its Cambridge head office. CeNes is looking to move to smaller premises.
CeNes is also cutting staff at its drug delivery unit in Irvine, Scotland. It is in talks to sell the unit, but may just unload some of its technologies.
'We have taken a number of difficult decisions to ensure that CeNes is best placed to generate shareholder value going forward,' said chairman Alan Goodman.
Shares in the group - which last year peaked at 135 1/2p - rose 5% to 10p in early trade. CeNes did not say how much the job losses would cost, nor what its annual savings would be.
But it said it had recently received a £700,000 research and development tax credit. This boon combined with the restructuring had allowed it to slash spending. It aimed to make a profit by 2003 without the need for further funding.
The company said early last month that it would reshape as tough markets raised doubts about its ability to secure fresh cash. That news accompanied the departure of chief executive Daniel Roach and several other directors. Losses widened to £20.5m in the six months ended June from £15.6m a year earlier, with sales down at £2.7m from £3.7m. It had £4.7m in the bank as at the end of June.
