SIG has appointed Brammer boss Meinie Oldersma as its new chief executive, as the FTSE 250 building supplies company looks to bounce back after a difficult year that has seen its shares fall almost a quarter.
Mr Oldersma had been at Brammer less than a year, joining the company last July and leading the troubled distributor of industrial repair kits through a takeover by private equity group Advent International.
He was previously a non-executive director at Bunzl, and chief executive of 20:20 Mobile Group.
Mr Oldersma joins SIG with the group also in a difficult position, after a self-described “disappointing” year triggered a profit warning and the departure of its previous chief executive in November.
Construction groups have suffered since last June’s Brexit vote, with peers such as Travis Perkins and Wolseley also reporting profit warnings and layoffs.
Leslie Van de Walle, SIG chairman, said:
I am pleased to announce the appointment of Meinie, who will bring his considerable and relevant experience to SIG. Meinie brings over 30 years od distribution experience and a strong customer focus to SIG.
He has lived and worked in a number of locations throughout Europe and has driven successful transformation of complexity and scale in a variety of organisations.
He has a track record of driving sales, as well as turning around and growing businesses. Together with the recent arrival of Nick Maddock as chief financial officer, this completed the recruitment of the executive team to take the business forward. We look forward to welcoming Meinie to SIG.
SIG announced Mr Oldersma’s appointment as it confirmed a 19 per cent drop in underlying pre-tax profit to £77.5m, in the middle of its previous guidance. Revenue rose 11.2 per cent to £2.7bn, but benefited from the weaker sterling, rising only 4.4 per cent on a constant currency basis.
Mel Ewell, SIG interim chief executive, said:
We have delivered underlying PBT in line with our previously stated range, but we are disappointed with the overall financial performance of the Group in 2016.
Although the Board believes that the Group’s strategic direction is correct, implementation has proved challenging. Accordingly, since November we have slowed or stopped a number of internal initiatives, which will allow our team to refocus on customers and sales growth in order to generate cash and improve ROCE. This will ensure that we build on SIG’s significant potential in 2017.