SIG, the UK building materials company, has announced the immediate departure of its chief executive Stuart Mitchell “by mutual agreement”, as it warned full year underlying profit before tax is likely to be considerably lower than in 2015.
Mel Ewell, a current non-executive director, will be temporarily appointed as interim boss as the company carries out its search for a new boss.
Leslie Van de Walle, chairman said:
On behalf of the Board and Group, I would like to thank Stuart for his commitment and all that he has contributed during his four year tenure as Group Chief Executive.
Stuart brought together a loose federation of independent businesses; developed a new strategy and plans to improve our procurement and supply chain functions; and identified new areas of organic growth opportunities in Air Handling and Offsite.
In a trading update on Friday, SIG reported a 0.8 per cent fall in like-for-like sales in the four months to the end of October due to a slowdown in activity in the aftermath of the UK’s EU membership referendum.
SIG said it has been hit by delays to commercial projects and weaker demand for technical insulation in the manufacturing sector.
The company on Friday lowered its underlying pre-tax profits guidance to between £75m to £80m for 2016. Last year, SIG made underlying profit before tax of £87.4m.
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