Former Staffline boss set for dramatic return with housing management giant
The former boss of a Nottingham recruitment giant could be in line for a return to the frontline of the business world with a leading housing management and social care group.
A fund advised by Shareholder Value Management (SVM), which holds around 9% of Mears Group issued share capital, wants to force an EGM to request the removal of the Group’s chairman, Bob Holt, and the appointment of former Staffline chief executive Andy Hogarth, who left the firm last month, as a non-executive director. SVM then wants the Mears board to appoint Higart as chairman.
A statement issued by SVM said: “SVM has filed the relevant papers with Mears Group. It argues the removal of Mr Holt and appointment of Mr Hogarth will create the right environment for the company’s CEO, David Miles, and his executive team to continue building the core business and improving shareholder returns. SVM remains very supportive of the current executive team and believes that their operational skills, alongside the experience of a newly appointed and independent chairman, with a brilliant track record, can successfully drive value creation for shareholders going forward.”
SVM goes on to point out that it believes Holt holds ten board seats, including six chairmanships, three of which are in publicly listed companies. SVM believes that Holt is “unable to devote sufficient time to the company”.
Bob Holt
The group goes on to say that the fact that Holt has been with the company 21 years has “led to sub-optimal decision-making at the board level”.
A spokesperson for SVM said: “We believe that the chairman of the board of Mears Group has continually failed to challenge the status quo and to remedy the situation, despite deteriorating results, a stagnant share price and faded shareholder value. In our conversations with the company, it has become clear that the current chairman lacks the will to enact much needed change that only a new independent chairman can bring. It is our view that Mr. Holt has become an impediment to the effective running of the company.”
“A well-rounded board with a diverse set of skills and experience is essential to provide proper oversight of any public company. Our proposed nominee, Andy Hogarth, would bring experience in public company governance, business strategy and capital allocation. His presence and the improved corporate governance he will bring should offer vital support to Mears’ very effective CEO and executive management in improving returns to shareholders. Accordingly, SVM looks forward to remaining a stable, long-term shareholder.”
Hogarth joined Staffline as finance director in 2002, became managing director in 2003, and was appointed chief executive when Staffline listed on AIM in December 2004. During the fifteen years of his leadership, the business grew from a turnover of £40m to nearly £1bn in 2017, with underlying operating profits growing from £2m to over £39m during the same period.
