Renta Corporación reorganises its management structure to one more suited to the current environment
RENTA CORPORACIÓN REORGANISES ITS MANAGEMENT STRUCTURE TO ONE MORE SUITED TO THE CURRENT ENVIRONMENT
. Vice-Chairwoman Anna María Birulés and CEO César Bardají leave the Company.
. David Vila is appointed as Vice-president, Juan Velayos as CEO and Javier Carrasco as Corporate Managing Director.
. Following this reorganisation, senior management has four instead of six executives and the workforce is reduced by a further 14 people.
. The Company significantly reduces its fixed costs.
. The Board of Directors has estimated the main financial figures for the half year, which reflect a loss of approximately 25 million euros.
In an environment marked by the prolongation of the international credit crisis, the Board of Directors of Renta Corporación has approved a new organisational structure, more suited to the current situation. In this context, the Vice-Chairwoman, Anna M. Birulés, and the CEO, César Bardají, have agreed to leave the Company. Their roles will be taken over by the other members of the senior management team, who have proven capability, competence and experience, and who will extend their current executive functions to take on these new responsibilities. The President of the Company, Luis Hernández de Cabanyes, highlighted the “significant contribution made by Anna María Birulés over the last few years in the strategic development and internationalisation of the Company”. In addition, the CEO pointed out “her hard work in the consolidation of operations and IT, implemented with great flexibility and efficiency”.
As part of the management restructuring, the Board of Directors has approved the appointment of David Vila as Vice-President, in addition to his current role as Managing Director for Operations; of Juan Velayos – hitherto the Company Secretary and Secretary to the Board of Directors – as CEO; and of Javier Carrasco, hitherto Finance Director, as Corporate Managing Director, a position which will add to his current financial responsibilities those of IT and Human Resources as well as Internal Audit. In parallel with this reorganisation of roles among the members of the senior management team, the Company President, Luis Hernández de Cabanyes, will continue to carry out the executive functions associated with his position and will spend more time managing and directing the Company. “The current market situation is very different from that of the last few years, and therefore we are obliged to take all the measures we believe necessary to achieve success in this admittedly difficult phase”, stated President Luis Hernández de Cabanyes, adding that “the market environment means that the Company cannot and must not be the same as a few months ago. The new organisational structure is therefore simpler and has lower costs, more consistent with the current context”. In the light of the reorganisation, the Company has announced that 14 people have been made redundant in the last few days. Following these changes, senior management has been reduced from 6 to 4 executives and the total workforce is now 125 people, with a consequent significant reduction in fixed costs.
Finally, the Board of Directors has made an estimate of the main half-yearly figures, which continue to reflect the low level of activity which characterises the current market. Renta Corporación has announced the expected results for the first half year, with sales of 175-176 million euros, an estimated gross margin of minus 4,6 million euros and an anticipated net loss of about 25 million euros. These results reflect not only the weak activity of the six months, but also certain extraordinary measures which the Company has deemed it necessary to take based on prudent accounting principles, such as the creation of provisions for specific inventory items and reduced capitalisation of interest charges. Debt will have fallen to 662 million euros versus 736 million in December 2007, in line with the policy implemented by the Company at the beginning of the year.
Barcelona, 17 July 2008 .
