Semple's major reshuffle

Scottish M&E contractor Semple has undergone a wholesale restructure with its entire board swept out.

The changes have been overseen by chief executive Gordon McKie, parachuted in by the Bank of Scotland four months ago to turn the ailing firm around.

With an annual turnover of £35m, the group had managed to lose more than £25m over the three previous years.

McKie cleared out the entire board, including non-executives. Eamon Hearty has taken over as finance director having worked with McKie previously.

Semple will now be run in four divisions rather than the previous 10. The number of regional offices is being cut. "We don't need 11," said McKie. "Of the five in Scotland, we're closing Paisley and Cumbernauld, leaving just three.

"I'm hoping to have Semple into profit in two years' time. There's a lot of tidying up to do. I'll either shed the loss-makers or get them running more smoothly. I'm asking the questions and starting to put plans into place."

The Bank of Scotland saw McKie as being the last chance for the firm. He has gained a reputation over the past 10 years as a turn-around specialist, having breathed life into two other businesses that were about to expire, both in the electronics sector.

"I saved them both and they were sold on to new owners," said McKie. "However, Semple is going to be more difficult as the scale is larger and there is more regional diversity."

After losing £5m in 2000, followed by another £10m in 2001, Semple found itself further in the red in the 12 months to 30 June 2002, with a pre-tax loss expected to run to £10m again.

"Past performance has been a high-profile disaster," said McKie. The group's previous chairman faces High Court action for the size of his bonuses during the loss-making period.

McKie said morale among the 350 staff has been transformed.