Hostmore to further cost cutting plans amid new CEO appointment
The cost reduction measures come as part of the board’s efforts to control costs and drive productivity at all levels of the organisation to improve its financial results
Hostmore has announced a further cost reduction programme that will result in £4.1m of annualised savings, in addition to the group’s £1.8m annualised savings, as well as the appointment of Julie McEwan as permanent CEO of the group.
The cost reduction announcement brings the total aggregate cost reduction to £5.9m on an annualised basis and total cash implementation costs to £0.6m.
The cost reduction measures come as part of the board’s efforts to control costs and drive productivity at all levels of the organisation to improve its financial results.
As a result of this cost-cutting programme, Hostmore’s affected employees and service providers have been dismissed from the group as it begins to accrue its savings in the second quarter of 2023.
Accordingly, these new reductions are expected to benefit FY23 results by approximately £2.8m, with the full annualised saving to benefit FY24 results as well.
Meanwhile, the board has announced the appointment of McEwan as Hostmore’s CEO effective immediately, as she has been in the interim position since 10 January.
McEwan was previously the chief operating officer since joining Hostmore in February 2022, and prior to joining the group, she was at Big Table Group as brand director of Las Iguanas.
She has also previously held management roles at Spirit Pub Company, Premier Inn, and Whitbread.
Gavin Manson, chairman of Hostmore, said: “Julie has impressed the board immensely during her period as interim CEO and her positive impact is already being felt throughout the organisation.
“The board is pleased that Julie has accepted the permanent CEO position and we look forward to working with her to deliver on our key objectives for the business.”
