UPDATE: SIG Names New Leadership To Drive Operational Improvements

(Alliance News) - SIG PLC on Tuesday said Chief Executive Meinie Oldersma and Chief Financial ...

Alliance News 25 February, 2020 | 12:25PM
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(Alliance News) - SIG PLC on Tuesday said Chief Executive Meinie Oldersma and Chief Financial Officer Nick Maddock have both resigned with immediate effect.

Oldersma returned to work on a full-time basis on February 10, following a leave of absence of just under two months due to a family illness.

The FTSE 250-listed construction products supplier said Steve Francis will become CEO, also with immediate effect, on an initial contract until the end of 2020. SIG noted that he is a "strong leader with a proven track record of returning radically restructured businesses back to growth".

Francis served as CEO of scandal-rocked Patisserie Holdings from mid-November 2018 to February 2019.

Patisserie ceased trading in London in February last year after the discovery in October 2018 of a GBP40 million black hole in its financial accounts due to potentially fraudulent accounting irregularities.

Prior to joining Patisserie, Francis led the turnaround of printing equipment supplier Danwood Group Holdings Ltd as CEO.

SIG said it continues to expects 2019 results to be in line with the guidance provided at the start of 2020.

In January, SIG guided for a substantial drop in profit for 2019, amid challenging market conditions and declining revenue. Underlying pretax profit for 2019 is expected to be GBP42 million, a 44% decrease from GBP75.3 million the year before.

SIG said it had made considerable progress during the year in transforming its business - including the disposal of its Air Handling and Building Solutions businesses. However, profit protection measures implemented by SIG set to mainly take effect in 2020, not 2019 as previously expected.

For 2019, SIG had said like-for-like revenue declined by 6.1%, as like-for-like revenue from UK & Ireland dropped by 16%, more than offsetting like-for-like revenue growth of 1.2% from Mainland Europe.

On Tuesday, SIG said trading in the early period of 2020 has seen a continuation of the trends in the last quarter of 2019.

SIG expects to report its annual results in the second half of April, not on March 6 as previously expected.

Finally, the Sheffield, England-based company said Kath Kearney-Croft - who joined SIG in January - was appointed as interim CFO with immediate effect. She was initially hired to provide support to the executive team during the leave of absence of Oldersma.

"The board is most appreciative of Meinie and Nick's contribution to the transformation of SIG," said Chair Andrew Allner. "They leave a much more focused business, a restructured balance sheet and a strong financial position, providing a sound platform for future growth."

He added: "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."

SIG shares were trading 17% lower in London on Tuesday at 69.40 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
SIG PLC 25.96 GBX 5.61 -

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