Boardroom coup at BGlobal
SENIOR directors at BGlobal have joined a shareholder revolt to oust executive chairman Peter Kennedy.
Chief executive Tim Jackson-Smith and two non-executives, James Newman and Steven Fawkes, have backed a move by Forest Nominees to remove Mr Kennedy at a general meeting next month.
They say the Darwen-based firm, which has recently switched form installing smart meters to selling software and other services to the industry, needs a change of leadership, “against a backdrop of poor financial and share price performance and an inability to successfully articulate the group’s strategy to investors.”
Shares in BGlobal, which is listed on the Alternative Investment Market, have continued to fall from 63p five years ago and are now worth 4.4p. The company has a market value of £4.6m.
Forest, which holds 9.79% of the AIM-listed company, first called for the meeting earlier in the month. It has failed to make its concerns heard and now wants to install John Grant as chairman.
A statement issued today said: “As the group has shifted its focus away from metering installations towards being a provider of software and services, the culture of the group and the style of leadership being offered to it also need to change. If this change does not occur, the independent directors are concerned that the group will not attract and will lose talented members of staff, thereby exacerbating the problems that the group already faces.
“It is for the reasons stated above that the independent directors believe that the status quo cannot continue and that the resolutions provide the company and all of its stakeholders with the best opportunity to effect the necessary change. It is the view of the independent directors that an independent strategic review is vital and it is important that this looks at all aspects of the group’s business and the efficacy of its existing senior management team, including the constitution of the board.”
Mr Kennedy holds 24% of the shares with the chief financial officer Nick Kennedy.
