The boss of Chemring, which is in the takeover sights of US private equity house Carlyle, today experienced the defence firm’s own ejector seats, leaving “with immediate effect”.
The shares plunged 7% on the news that David Price, who has been at the munitions and pyrotechnics firm since 2005, will be replaced by Mark Papworth, formerly head of gas turbine services at FTSE 100 energy firm Wood Group.
Chemring flagged up Papworth’s skills in “successful turnaround, improved manufacturing capabilities and substantial improvements in profitability.”
Before Wood Group, he was vice-president of Rolls-Royce Energy in the US.
With no firm offer having yet emerged from Carlyle, Chemring is thought to be keen to push on with a new strategy. “This decision is a reflection of the board ... [it] feels that a change in leadership maximises the strength of the company’s position,” a Chemring spokesman said. “I wouldn’t interpret it as related to Carlyle in that respect.”
The firm’s shares jumped by a third in August when Carlyle’s acquisition interest came to light, only to fall days later when it warned that it would miss full-year operating profit forecasts by £15 million due to delays in the production of its latest device to help troops avoid minefields.
Ben Bourne, defence analyst at Liberum Capital, said Price’s departure increased “the possibility of further downgrades”
Chemring was 23.1p lower today at 323.2p.
