Consolidation of Shares – Help Please

I know I have the power of Google but would like to throw a question out to the forum as we have some very knowledgeable folk here regarding Consolidation of Shares.

I have been a heavy investor in one particular company who I used to work for, unfortunately the company is not performing well and the price has been very poor for a long time with no dividend. I have just received a notification today from Hargreaves Lansdown who I have the shared lodged with that says:

"The board of xxx has announced a reorganisation of the company’s share capital. Shareholders as at close of business on 28 April 2025 will have their holding consolidated, receiving 1 new share in place of every 15 previously held."

So assuming the vote says this can go ahead does this mean that the 1 new share will be valued at 15 times the current share? I fully understand that the share price will change based on the market but I presume at least at the time of the transition they would be worth 15 of the old shares.

What advantage do companies get out of doing this sort of thing?

Thanks
Eddie