FTSE 250 movers: Enodis makes pre-emptive job cuts

Food equipment manufacturer Enodis said first half sales are expected to be up 7% on a like-for-like basis and added that it will cut jobs to deal with any weakness in North America.

“To mitigate any potential market weakness in North America we are taking a number of pre-emptive cost actions across the group including headcount and overhead spending reductions as well as restructuring of some business units in Europe/Asia that will benefit H2 and beyond,” said the group.

In North America its business remains strong although it is seeing a degree of softness in some other segments of that market.

Despite expecting a 7% rise in like-for-like sales, the group said the half was impacted by strong comparators to the prior year as a result of the non-repeat of a North American chain roll-out.

The group said Foodservice Europe/Asia and Food Retail are also performing strongly.

Power supply protection firm Chloride said full year results will be ahead of management’s expectations with operating profit expected to rise around 50%.

The group also announced the forthcoming retirement of its chief executive Keith Hodgkinson, who will step down from his role in July 2008. He will be succeeded by Tim Cobbold, who joined the board as chief operating officer in June 2007.

“The full year results will be ahead of management's expectations, with an increase in operating profit (before amortisation) in the order of 50% over the previous year,” said the group

Sales for the year are expected to be 30% ahead of last year, with organic sales growth well ahead of the market. Operating margin is expected to increase by a minimum of 1.5 points to approximately 13% due to strong operational gearing.

“A record order book for products and services of circa £100m and continuing momentum in key market sectors including IT services, data centres, energy and oil and gas, support a positive outlook for the coming year,” it said.

Tax provisions of £3m related to potential taxation risks on businesses divested in 2001 are now no longer required and will be released in the financial year ending 31 March 2008, it said.