Ennstone axes 120 as offer talks remain ongoing

Ennstone is shedding 120 jobs as a result of a slackening in demand for aggregates.

The figure accounts for 10% of the present 1,200 workforce which is active throughout the UK.

In an interim management statement this morning, Ennstone said: “Since September, trading conditions have remained difficult, with the business in both the English Midlands and Scottish markets experiencing reductions in volumes and coming under pressure from the lack of new development and house building activity.”

Margins were slipping downwards during the summer when the hikes in energy costs couldn’t be fully passed on, but this pressure has now eased somewhat.

Even so, the pricing environment remains highly competitive, said Ennstone. 

The downturn in trading has put the group's cash position under pressure.

The picture in the US is even worse than in the UK.

US sales volumes have remained flat with prices, particularly of ready mixed concrete, continuing to fall. Funding pressures in the US have been “even more pronounced than in the UK”

As a result, Ennstone “is in active discussions with its US suppliers and finance providers to provide sufficient liquidity to allow it to trade through the difficult winter trading period.”

Ennstone's Polish business has remained relatively robust.

The 10% cut in the UK workforce should make for a £2m cut-back in annual costs. The price for making this cut is put at £750,000. 

Is there is bidder for Ennstone still waiting in the wings?

The answer seems to be yes there is. Ennstone confirmed today that talks are still “ongoing”.