Page last updated at 15:04 GMT, Tuesday, 31 March 2009 16:04 UK

Military radio firm sheds 45 jobs

A firm in Cambridgeshire that designs and manufactures secure digital radio systems for the military and emergency services is to shed 45 staff.

Sepura, based in Cambridge, is carrying out a restructure costing £1.3m under new chief executive Gordon Watling.

"The actions will significantly improve efficiency of the business, allowing us to redirect resources into new products and increasing sales," he said.

The firm with 350 staff will also write off development projects worth £1.2m.

A company statement added: "Operations will be restructured to improve efficiency and streamline costs. This will result in a reduction of up to 45 permanent and temporary positions.

Small cost reduction

"A provision of £1.3m will be made in this year's accounts to cover redundancy and related costs. Collective consultation with the staff council will begin immediately.

The cost reduction from the restructuring will be re-invested in increasing Sepura's international sales resource and in new product development. Overall, this will result in a small reduction in total operating costs."

Sepura has also reviewed its development projects which has led to a write-off of approximately £1.2m.

Chairman Philip Nolan said: "Under our new chief executive officer the company has taken a number of steps to streamline costs, refocus our development portfolio and add weight to our sales resource.

"Our success in winning the first four tenders in the important German market highlights the competitive strength of the company."

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