Low & Bonar, the specialist materials group which has its roots as a jute maker in Dundee, today said its chief executive is leaving as it again warned on profits.
The group decided that a change of leadership is required as the business looks to turnaround its fortunes and that Philip de Klerk will depart on 1 July. Non-executive chairman, Daniel Dayan, will become executive chairman and Low & Bonar said the search for a new chief executive will not be initiated immediately and the situation will be reviewed later in the year.
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“The board expresses its thanks to Philip for his efforts as CFO and CEO in identifying and tackling significant and long-standing cultural, operational and organisational weaknesses during a very challenging period for the group,” the group said in a statement.
The news came as the company said the rate of improvement in trading performance is below expectations and that first half performance will be materially behind that of the prior half year.
It blamed factors including the ongoing Chinese/US trade dispute which it said has created significant uncertainty in the Chinese market. Weak demand in transport markets, notably Germany and Eastern Europe, has also been a headwind.
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“The board continues to expect the improving sales trend to underpin a stronger second half, helped by the usual seasonality in the business, and also supported by further cost reductions already in process. In light of current trading and ongoing weakness in certain markets, the board has lowered its expectations of full year performance.”
Low & Bonar’s products are used in applications including civil engineering and flooring to building products, transport and industrial businesses.
The group employs around 50 people at its site in Dundee where it makes carpet backing.
