Share price hike as turnaround CEO appointed

The share price of beleaguered construction supplier SIG jumped more than 7% today on the back of the announcement that a new group chief executive, Meinie Oldersma, had been appointed.

From a low of 112.0p on opening, SIG’s share price jumped to a high of 120.19p today, an increase of 7.3%.

It is currently at its highest point since November 2016, when its profit warning hit and former group chief executive Stuart Mitchell agreed to step down.

Supplier inflation and competition hammered its share price during 2016 and it hemorrhaged profits during the year, falling into the red with losses of £106.3m, from profits of £51.3m the year before.

Now, Meinie Oldersma has been hired to take the helm at the group. He is known as a turnaround chief executive, with a track record of reversing the fortunes of struggling businesses and driving sales, a prospect that has clearly excited investors, according to investment platform AJ Bell.