Stobart’s under fire chairman to step down as embattled firm moves to heal wounds

Strife-torn Stobart Group has moved swiftly to heal the wounds after last Friday’s damaging annual general meeting in Guernsey, with pledges to bolster its boardroom and work closely with investors to get the group back on an even keel.

Part of the plan will see chairman Iain Ferguson step aside to make way for a new chairman.

The Carlisle based firm has been gripped by an extraordinary boardroom battle which has seen threats of legal action, sackings and accusations of bullying. At one stage there was even an intervention from popstar Ronan Keating.

Iain Ferguson

Former chief executive Andew Tinkler was sacked from the board on June 14 in a row over his bid to unseat current chair Iain Ferguson.

Last Friday he failed to oust Mr Ferguson when 51.2% of shareholders came down in favour of the board at the AGM in St Peter Port.

The 63-year-old Chairman had been the target of a campaign by former Stobart boss Andrew Tinkler who wanted to replace him with Stockport born retail tycoon Philip Day.

Mr Tinkler was also thwarted in his bid to regain a seat on the board when a Guernsey court backed moves to keep his name off the AGM ballot paper.

He was briefly reinstated following a vote during the meeting, by a margin of 51.4%, but the board immediately removed him again.

A search has also been launched to find a new chief financial officer following the resignation of Richard Laycock.

The board has also said it wants to press ahead with plans to appoint a woman to its ranks.

Stobart has unveiled its plans to put this damaging episode behind it and create a new structure to drive the business forward.

In a statement to the Stock Exchange it declared it has “a focused and ambitious strategy to double the value of the business by 2022”.

Andrew Tinkler, Stobart Group

The board said it firmly believes it has the right management team in place to work toward the goals of welcoming five million passengers annually at the group’s London Southend Airport, delivering three million tonnes of biomass each year, and securing even more third-party civil engineering contracts by that time.

It added: “The board believes the management team can only operate effectively within a stable framework of strong corporate governance focused on protecting the interests of all shareholders.”

To achieve this it announced a series of proposals. These are:

“Through the nominations committee, the company will appoint a leading independent search firm to undertake a thorough and rigorous process to identify suitably qualified and independent persons to be appointed as non-executive chairman, as senior independent director and one or more additional non-executive directors.

“Significant shareholders will be consulted as part of this process and encouraged to suggest suitable candidates.

“The search will be conducted around agreed parameters of high-quality corporate governance and independence and the intention would be to appoint at least one female director. As previously announced, the company has already identified a female candidate.

“The board has also commenced an executive search to find a suitable interim replacement as chief financial officer for Richard Laycock, following his stepping down from the board on July 5, 2018.

“These changes will result in a refreshed and strengthened board, led by a new independent chairman and a new senior independent director. The process will start immediately, and all appointments will be made no later than the 2019 AGM.

“The board and the company’s brokers will work constructively with all shareholders to strengthen the company’s shareholder base to include additional long-term shareholders who are attracted by the value creation opportunity that the company represents. It has already been contacted by one such party interested in making a significant investment in the company. The board will actively explore other options, specifically, the board will make a proposal for Andrew Tinkler’s shareholding as soon as practicable.”

Mr Tinkler holds a 7.8% stake in the group.

And the statement added: “The board takes very seriously the concerns raised by certain employees in the last few weeks regarding alleged bullying and whistleblowing. The board will immediately appoint an independent firm to investigate these matters.”

Stobart’s board said it will start discussions with major stakeholders over the coming days, and further announcements will be made in due course.

Stobart Group chairman, Iain Ferguson, said: “The last few weeks have been incredibly challenging for all who are involved with Stobart Group.

“Following the receipt of shareholder support for all directors at the AGM, the board is now seeking to re-unite stakeholders through these proposals which it hopes will obtain widespread support and avoid further unnecessary and disruptive public argument.

“We look forward to maintaining a strong independent platform for Warwick Brady and the management team to take forward the agreed strategy and deliver outstanding returns for all shareholders.”