Huge write-offs at engineering giant sees new boss sacked before he starts

GKN has revealed a write-off of up to £130m and sacked its chief executive designate, six weeks before he was due to take on the role – and before the man he was replacing has even left.

The crisis-hit manufacturing group had informed investors last month of unspecified claims totalling £40m that was expected to hit its profits this year. The news caused its share price to plummet, wiping off £400m from its value in one day.

That announcement followed a senior management shake-up in September, with chief executive Nigel Stein due to retire at the end of 2017 and finance director Adam Walker leaving for a role outside of engineering.

But now Stein’s replacement, Kevin Cummings, will leave GKN immediately after the Redditch-based group’s board decided “the next stage of GKN’s development is best delivered under alternative leadership”.

Instead non-executive director Anne Stevens will become interim chief executive on January 1 while a permanent replacement is sought.

GKN, which is one of the West Midlands’ largest public companies, is having major problems caused by its North American aerospace division.

It has previously said it would incur a £15m non-cash charge at its Alabama operation caused by changed to its inventory and receivables balances. Following a review of working capital across its other aerospace plants in North America, it expects additional write-offs of between £80m-£130m.

Cummings was chief executive of GKN’s aerospace division.