Rotork CEO resigns as board seeks 'higher growth in low growth environment'
Rotork chief executive Peter France has tendered his resignation from the engineering group, "after a period of reflection by the board".
Chairman Martin Lamb will assume France's role with immediate effect until an appointment of a new successor, the actuator manufacturer and flow control company said, while assuring that current trading for half year and full year guidance were in-line with expectations.
This news follows a mutually agreed decision after a period of reflection between the board and Peter that the former was "now focused on identifying the right leader to deliver the greatest shareholder value from this next phase in the company's development", said Lamb.
The board felt a new CEO was required to return Rotork to higher growth and margins in what "is likely to be a generally lower growth macro environment", which management feels will include accelerating investment in key areas such as product innovation and customer service and driving greater efficiencies, ie slashing costs.
Lamb commended France on his achievements: "I would like to thank Peter for all his efforts and achievements throughout a long and successful career with the company. The board recognises the more challenging market environment faced by the business in recent times, particularly in the oil and gas sector".
For his part, France said:"It has been a real privilege to lead Rotork over the last nine years, and to have played such a key part, across many different roles, in the 28 years that I have been with the company. We have built great foundations and I wish Rotork every success in the years ahead".
Rotork shares were down 5% to 238.8p by midday on Friday.