Shares of Premier Foods Plc (PFD.L) declined around 9 percent in the morning trade on London Stock Exchange after the UK-based food producer announced the resignation of its Chief Executive Officer Michael Clarke, with immediate effect. Clarke was appointed as CEO just 18 months back and he was leading the efforts for a turnaround. Gavin Darby will replace Clarke with effect from February 4.
Clarke, who joined Premier in September 2011, indicated to the Board that he was potentially considering moving on to pursue other business opportunities, having delivered the initial turnaround of the company and set a course for future sustainable profitable growth. He has agreed to remain available until mid 2013 to ensure an orderly handover to his successor.
Premier Foods Chairman David Beever said, “Michael Clarke and the team have done a first class job in stabilising the business, strengthening its balance sheet, divesting non-core businesses and generating momentum. This is a significant achievement in a challenging market and I would like to thank Mike on behalf of the Board for his contribution.”
The newly appointed CEO Darby, most recently was the chief executive officer of Cable & Wireless Worldwide Plc (CW.L), which he successfully turned around before negotiating its eventual sale. He spent fifteen years at beverages giant Coca-Cola Co. (KO: Quote) in senior leadership roles before moving to British telecom giant Vodafone Group Plc (VOD: Quote,VOD.L) in 2001, where he was CEO for its non-European joint ventures.
Darby added, “Although markets remain difficult, I look forward to working with the team to develop and grow the Company’s Power Brands in the coming years. Premier Foods has great potential and I fully intend to invest a significant personal sum in the shares of the Company after the Full Year results are published in February which the Company will match.”
On January 17, the company had announced that its fourth quarter trading for 2012 was in line with its expectations and that its full-year results for 2012 are expected to be in line with current market expectations.
In London, Premier Foods shares are currently trading at 110 pence, down 10.50 pence or 8.71 percent.
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by RTT Staff Writer
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