Change at the top for troubled engineering group

Troubled Midlands engineering giant GKN has undergone a change of management following the retirement of its chief executive.

Anne Stevens has assumed the role of Interim Chief Executive following the departure of Nigel Stein at the end of last year.

She inherits a business which saw a turbulent end to 2017 after it revealed a £130m write-off and the sacking of its chief executive designate, six weeks before he was due to succeed Mr Stein.

The Redditch-based group had informed investors in October that profits were likely to be dented as a result of unspecified claims totalling £40m.

The news caused its share price to plummet, wiping £400m from its value in one day.

In addition to Mr Stein’s retirement, finance director Adam Walker stepped down in favour of a role outside of engineering.

Mr Stein’s replacement, Kevin Cummings, was ousted after the group’s board decided the next stage of its development would be best delivered under alternative leadership.

This saw non-executive director Ms Stevens thrust into the top job until a permanent replacement is found.

Much of the group’s woes has been down to major problems at its North American aerospace division.

It has previously indicated it would incur a £15m non-cash charge at its Alabama operation due to changes in its inventory and receivables balances. Following a review of working capital across its other aerospace plants in North America, it said it had expected additional write-offs of between £80m-£130m.

Part of Mr Cummings’ ill fortune was that he was chief executive of GKN’s aerospace division.