In brief: all change at Cyprotex, Beevers wins Manufacturing Institute and more…

DRUG testing company Cyrotex has seen more boardroom turmoil as its chief financial officer and non-executive director have both resigned.

Nikolas Sofronis and Russell Barry Gibbs resigned as non-executive director and Chief financial officer respectively, of the Macclesfield-based company, with effect from 31 December 2008.

The departures follow several others in a relatively short period. In June, Robert Atwater resigned as chief executive less than three months after his dual role as chairman and chief executive was split. He was replaced by Dr Anthony Baxter.

Mr Sofronis took the chairman’s position in March, only to quit the position at the end of August after the company posted its first profits.

In a statement to the stock exchange, current chairman Steve Harris said: “Both Nikolas and Russell have made significant contributions to the development of Cyprotex over the years for which we are extremely grateful.

“I thank them on behalf of the Company and wish them well in the future. Cyprotex is actively seeking candidates for the Board vacancies created by their resignations.” 

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MANCHESTER-based accountancy firm Beever and Struthers is to provide audit services for The Manufacturing Institute.

The charity, also based in Manchester, aims to advance manufacturing and encourage its growth in the UK. It delivers the government’s Manufacturing Advisory Service in the North West.

“Beever and Struthers has a solid reputation and track record and we feel confident in engaging its expert services for our audit,” said Dominic Payne, financial director for The Manufacturing Institute.

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THE second half of 2009 is likely to see a surge in North West SMEs entering distressed merger and acquisition deals, particularly in the leisure sector, according to KPMG.

Stephen Hunter, head of travel, leisure and tourism at KPMG in the north, predicts that desperation to raise cash will eventually outweigh concerns over asset valuations or the natural desire to avoid selling off the crown jewels. 

“Deals in the sector will remain largely frozen in the early part of the year, with potential buyers wary of overpaying for assets. 

“However, later in the year, while large deals will remain unlikely due to funding constraints, those with the necessary cash reserves for smaller investments will be keeping out a watchful eye for bargains, which will become more plentiful as distress increases and selling assets becomes imperative for survival,” he said.

Mr Hunter added that in the hotel sector, the stronger budget and luxury hotel brands will seize the opportunity to snap up assets from mid-market counterparts that are affected more severely by reductions in business travel and leisure spend.

He said that further consolidation is also likely in the health and fitness and travel sectors, while pubs, bars and restaurants have a mixed outlook.

“Trading results from the peak January period, when gym subscriptions are traditionally taken out and people book their summer holidays, will be keenly awaited providing insights in to which players are remaining strong and which are struggling.

“Pubs and bars are already suffering from a combination of pressures and restaurants will feel the pinch as the economic downturn continues, making them seemingly unlikely targets for investment, but the stronger brands will remain attractive from a buyers’ point of view.”