Low & Bonar shares hammered by profit warning and chief executive departure
Shares in Low & Bonar have dropped after the firm warned of a hit to its full-year performance and said its boss is to step down.
The building materials company announced the departure of chief executive Philip de Klerk on Monday, after the board decided a “change of leadership” was required.
He will stay on until July before being replaced in the interim by chairman Daniel Dayan, who will take on executive chair responsibilities.
The news came as the group also said its annual performance would be dented due to a weaker first half, with uncertainty over Chinese-American trade tensions affecting sales.
Shares in the firm plummeted 26.4% in early trading on Monday.
In a statement, Low & Bonar said: “Progress is being made, but it is taking longer than anticipated to resolve some of the legacy issues during a challenging period.
“The board will take the actions necessary to improve performance in the short and longer-term.”
The board is set to focus on disposing of the group’s civil engineering division, which is expected to complete in the current financial year.
It will also put cost-saving measures into action.
Mr de Klerk’s departure was put down to the need for a “change of leadership” as the group accelerates its transformation plan.