Shares in a British tech group dubbed Amazon for Engineers plunged after its US boss took a leave of absence and returned to the US to resolve a family problem.
RS Groupwhich was founded in 1937 and was formerly known as Electrocomponents, said its chief executive, Lindsley Root, stepped down immediately.
Shares fell 7.3%, or 69.5 pence, to 885 pence on the news. Understandably, Ruth felt that personal matters were detrimental to his ability to run the FTSE100 business.
RS Group, which was founded in 1937 and was formerly known as Electrocomponents, said its chief executive Lindsley Root resigned immediately.
Finance boss David Egan will take over Ruth’s duties while doing his job. RS Chairman Baroness Fairhead said: “We have built a great business under Lindsley’s leadership and he has our support during this period.
“The Board of Directors is very grateful to David and our experienced senior management team for stepping up and we are confident that we will continue the good momentum in the business.”
Root ran the private Canadian business Future Electronics before taking over RS in 2015. He also took a leave of absence from November 2019 to February 2020 due to personal health issues.
The change at the top came after the company said revenue rose 21% to £1.46bn in the six months to September, while profit rose 34% to £182.5m.
Despite the global economic turmoil, there was no slowdown in Europe and the Americas, RS added. The group also said that the £246 million acquisition of Mexican distributor Risoul should be completed by the end of the year.
FTSE100 rose by 0.6%, or 44.49 points, to 7188.63, but FTSE250 fell 0.6%, or 108.14 points, to 18109.61 as investors digested the Bank of England’s decision to raise interest rates from 2.25% to 3%.
The chairman of the Frasers Group, which owns Sports Direct, Jack Wills and Flannels, has bought more than £20,000 worth of shares.
Smith and nephew, a maker of medical implants and prostheses, rose 2.9%, or 29p, to 1,034.5p after the company said revenue for the year should rise 4-5%. Revenue rose 4.8% to £1.11bn in the three months to October.
The group also became the first company to receive regulatory approval from the US Food and Drug Administration for robotic knee surgery.
STOCK WATCH: Xpediator
Shares of Xpediator soared after the company made money transporting goods across Europe. The AIM-listed freight management company said its revenue in the nine months to September was around £300m, more than in all of 2021. The group also said it is aiming to reduce debt. Shares rose 16.7%, or 3.5 pence, to 24.5 pence.
In the second tier Hikma Pharmaceuticals rose 1.1%, or 13.5 pence, to 1,296.5 pence after the company reiterated its guidance for the year and said the search for a CEO is progressing well.
Kitchen supplier Howden joinery added 3.2%, or 16.4 pence, to 535 pence after raising its earnings forecast for the year as families improve their homes. Earnings are now expected to be “slightly above” the market’s forecast figure of £387m.
Meanwhile, the chairman Fraser Group, which owns Sports Direct, Jack Wills and the Flannels, bought over £20,000 worth of shares. In a vote of confidence, David Daly bought 3,117 shares at 645 pence each. Shares, however, fell 1 percent, or 6.5 pence, to 646 pence.
TI hydraulic systems failed to impress the market amid concerns over the Chinese battery electric vehicle market. The auto parts maker said it was facing restrictions in China, where “local incentives” have spurred the growth of the battery electric vehicle market. JPMorgan cut the group’s price target to 170p from 205p.
But revenue rose 28.8% to £737.9m in the three months to September, helping the company stay on track to achieve full-year results in line with expectations. Shares fell 7.4%, or 9.8 pence, to 123 pence.
Train shares fell 8.8%, or 30 pence, to 310.7 pence after a ticket seller warned that a recent strike was holding back the rail industry’s post-pandemic recovery. But ticket sales rose 116% to £2.2bn in the six months to August, with revenue up 112% to £165m. Trainline also made a profit after a loss.
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