Board shake-up at Mucklow as chairman steps back from the business

BLACK Country property group, A&J Mucklow has announced details of a board shake-up that sees chairman Rupert Mucklow reduce his commitment to the business.

The Halesowen firm said Mr Mucklow would be cutting his workload down to three days a week, starting from May 1.

The firm’s nomination committee said it was confident that Mr Mucklow would continue be able to fulfil the role of executive chairman.

The announcement had little impact on the firm’s share trading.

Mr Mucklow said the reduction in hours would allow him to concentrate on “private family matters”.

He said in a statement: “I am delighted that the board have allowed me some flexibility on my time commitment to Mucklow. I have now completed 25 years at the company, the last 12 years as executive chairman and I remain totally committed to the business.”

It is unclear whether the announcement is linked to the firm’s latest interim results, which indicated that the company would be shifting its focus because of a subdued regional investment market, with fewer quality buying opportunities.

In last month’s interims it said yields on prime Midlands industrial property were still reducing and values increasing, but at a slower rate, while yields on secondary properties were starting to drift a little, due to a bit of investor caution.

Half year results to December 31, 2015 showed gross rental income received during the first six months was 9.7% higher at £11.5m (December 31, 2014: £10.5m).
 
Underlying pre-tax profit increased by £1.0m to £7.5m (December 31, 2014: £6.5m).

Mr Mucklow’s decision has paved the way for the firm to bring in one of Birmingham’s leading property figures.

Ian Cornock (left), currently lead director for the Midlands Region of Jones Lang LaSalle (JLL), has been appointed as an Independent Non-Executive Director and as a member of the company’s Audit, Remuneration and Nomination Committees. He will also assume the role of Senior Independent Director from July 1, 2016.

Mr Cornock has over 30 years’ experience in commercial property, the last 18 years running the Birmingham offices of Colliers, King Sturge and JLL.

Paul Ludlow, current Senior Independent Director, will retire from the board on June 30, 2016 after nine years with the company.

Mr Ludlow has agreed to become a consultant to the business for two years from July 1, in order to continue to assist the development team.

Jock Lennox will be also be stepping down as a Non-Executive Director at the company’s Annual General Meeting in November, having completed six years as chairman of the Audit Committee.

The Nomination committee has started the search for Mr Lennox’s replacement and intends to appoint this summer.

Mr Mucklow added: “I am sorry to be losing two exceptional Non-Executive Directors this year, both of whom have made large contributions to the board, but I am also very excited at the prospects of working alongside two new Non-Executive Directors and I am confident that our business will continue to benefit from the wealth of experience our specialist Non-Executive Directors offer.”