Kennedy to fight Bglobal revolt

BGLOBAL’s executive chairman Peter Kennedy is to resist an attempt to remove him at a general meeting next month.

Chief executive Tim Jackson-Smith and two non-executives, James Newman and Steven Fawkes, have backed a move by shareholder Forest Nominees to oust Mr Kennedy at the meeting.

In a statement to shareholders Mr Kennedy said the action was motivated by a desire to sell the business, but he believes it is on the cusp of some major long-term contracts with local authorities and housing associations.

The Darwen-based firm has recently switched from installing smart meters to selling software and other services to the industry.

Mr Kennedy conceded he would step down if an independent review found he was “part of the problem”. He said: “I believe there should be change but not through my removal from the board at this crucial stage in your company’s development.”

Last week those calling for Mr Kennedy to resign said they had taken the action, “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 4.3p. 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 wants to install John Grant as chairman.

Mr Kennedy holds 23.6% of the shares and will vote against a resolution for him to step down that must be backed by the majority of shareholders.