Durex-maker targets back office jobs

JOBS are under threat at SSL International as the Durex condoms-maker looks to bring running costs down by £10m after the completion of its radical disposal drive.

Chief executive Gary Watts said it was almost certain the group's back office functions would be trimmed back at the same time as SSL throws more weight behind its consumer brands.

'We have central costs of approaching £60 million and our challenge for the coming year is how to cut that back,' Watts said. 'We need to chip away without damaging sales growth.'

SSL employs 200 people in various sites around Manchester. Its global workforce is nearer to 4,000. The group has raised £250m through the sale of its Marigold gloves unit, its wound-management division, and earlier this week its Hibi antiseptics and Biogel surgical gloves arm. These disposals contributed a third of SSL's turnover and half its profits.

Watts wants to focus on SSL's Durex empire and Scholl footwear and footcare, the latter a market he believes will double in value to £200m as customers look to prevent corns and bunions.

Durex sales rose 7.4% in the year to 31 March but writedowns on the disposals meant SSL posted a pretax loss of £7.5m against profits of £39.1m 12 months ago. The dividend is being halved to 4.2p.

SSL shares dipped 1p to 312p.