Shares of Sheffield-based European building materials supplier SIG fell about 17% on Tuesday after it said its CEO Meinie Oldersma and CFO Nick Maddock have resigned with immediate effect.
SIG said it appointed Steve Francis as CEO on an initial contract until December 31, 2020.
Francis was previously CEO at Patisserie Holdings plc and Tulip Ltd.
“Steve has had a wide-ranging CEO, CFO and management consulting career,” said SIG.
“He is a strong leader with a proven track record of returning radically restructured businesses back to growth.
“The board has also appointed Kath Kearney-Croft, interim chief financial officer, as a director of the company with immediate effect.
“Kath joined the company in January 2020 initially to provide support to the executive team during the leave of absence of Meinie Oldersma.
“Prior to joining SIG, Kath was group finance director of The Vitec Group plc for two years and served at Rexam plc for nine years in a number of senior financial leadership roles including group finance director prior to Rexam being acquired by Ball Corporation Inc.
“Andrew Allner, non-executive chairman, will continue to provide increased levels of support to the new executive team to ensure a smooth transition of responsibilities.”
SIG also provided a trading update, saying: “Results for the year ended 31 December 2019 are anticipated to be in line with the guidance provided on 9 January 2020 of underlying profit before tax for the year of c.£42 million.
“Trading in the early period of 2020 has seen a continuation of the trends in the last quarter of 2019.
“The group is in a strong financial position following the completion of the sale of the Air Handling Division on 31 January 2020 and anticipates completion of the sale of the Building Solutions business in the first half of the year.
“These disposals complete the transition to a robust balance sheet with a net cash position on a pro forma basis.
“This will provide flexibility and scope for investment in the business where attractive returns can be made.”
SIG will now announce its 2019 full year results in the second half of April 2020, having previously planned for March 6.
Chairman Andrew Allner commented: “The board is most appreciative of Meinie and Nick’s contribution to the transformation of SIG.
“They have led with great determination, energy and urgency in significantly reducing the cost base of the business, improving operating efficiency and completing the disposal of non-core businesses.
“They leave a much more focused business, a restructured balance sheet and a strong financial position, providing a sound platform for future growth.
“Now that this essential restructuring of the group has largely been completed, the Board believes that it is time for a new leadership team, with skills in driving rapid operational performance improvements through strong customer relationships, excellence in customer service and creating highly engaged teams.
“Management’s focus will be on developing the group’s purpose and vision, building on its leading market positions and returning the business back to profitable growth.
“Steve is a widely experienced CEO with a strong track record of returning businesses to growth and so the board has appointed him to help deliver this goal and help build relationships with all stakeholders.”