Babcock International Group PLC (LON:BAB) have told shareholders about a couple of changes to their senior board on Wednesday.
The firm said that Chief Executive Officer Archie Bethel will be stepping down from his role, and will depart when a suitable replacement is found.
Bethel has held his role for four years, and has been with Babcock for 16 years since his initial appointment since 2004.
Ruth Cairnie, Chair, said: “On behalf of the Board, I want to thank Archie for his service to Babcock, during which time he was instrumental in growing Babcock from a small cap to a leading defence business. Archie has been a proven and respected leader, whose knowledge and understanding of the sector is second to none.”
Archie Bethel, Group Chief Executive, said: “Having served at Babcock for 16 years, I feel that this is the right time to retire. In the meantime, I am focused on positioning the Company for further success in the future. It has been an honour and privilege to serve at Babcock and I am proud of what the Company has achieved.”
Babcock also announced that it would be appointing United Utilities Group PLC’s Chief Financial Officer Russ Houlden as non-executive director with effect on April 1.
Houlden has held his role at United Utilities for ten years since 2010, and has also held senior roles on the reporting committee of the 100 Group.
“Russ has been an integral part of the work we have done in recent years to transform the organisation, helping us to deliver best ever levels of customer service, a more resilient network and real gains in operational performance and efficiency. Alongside this, Russ has helped secure a robust and sustainable financial profile for the company, including securing a fully funded pension scheme on a self-sufficiency basis,” said United Utilities Chief Executive Steve Mogford.
Transition period for Babcock
Babcock have seen a steady period of growth across the last few months, and in November the firm saw interim profit growth.
For the six months to September, the firm reported pretax profit of £152.5 million, which was a huge rise from the £65.1 million figure a year ago.
However on an underlying basis the figure dropped by 18% to £202.5 million from £245.5 million.
Revenue meanwhile dropped by 2.7% to £2.19 billion from £2.25 billion the prior year, with underlying revenue also slipping by 4.7% to £2.46 billion from £2.58 billion.
Babcock said that the revenue dropped because of the step downs in its Queen Elizabeth Class aircraft carriers contract, which contributed heavily to the falling revenue figures.
Statutory pretax profit benefited from the lack of exceptional charge of £120.4 million, which alluded to the restructuring of the oil and gas division.
Bethel leaves at a time where Babcock look like they are in good footing and in a period of transition, and the firm will take rigorous checks to make sure a suitable successor is found.
Shares in Babcock trade at 598p (-0.63%). 5/2/20 10:57BST.