Cuts Watch #193: Cuts and the Private Sector
More businesses are being hit by the cuts in public spending. Yesterday, TUI Travel saw its share price fall 10 per cent after it issued a profit warning; the company said bookings for holidays had fallen because of warmer weather in the UK and the planned budget cuts. Construction group Morgan Sindall warned that cuts had left it “fighting hard to stand still.” Southern Cross healthcare (which operates care homes) issued a profits warning and blamed government cuts. Hill and Smith, a specialist constructor of crash barriers and other motorway fixtures, warned that road cuts would hurt their profits. Interserve, which cleans the Crown Courts, is optimistically looking to growth in overseas markets. Schools IT suppliers the RM Group saw its shares plunge after it warned that important contracts were threatened. Regional publisher Archant has warned that the cuts will harm their profits in the second half of the year. A small cut, but one that illuminated the range of businesses threatened by the cuts was announced by law firm Trowers and Hamlins, which is to make three or four associates redundant in its public sector practice.