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Munitions and pyrotechnic supplier Chemring (LSE:CHG) started 2013 with a display of fireworks in the boardroom, to which investors have expressed their appreciation in trading that saw the company’s share price skyrocket by 7%, up 16.70 pence to 255.00 by early afternoon.
In two separate press releases this morning Chemring CEO, Mark Papworth, announced a shakeup in the boardroom with the appointment of a new Director of Human Resources and a new Group Finance Director.
Papworth has been CEO for a mere two months, stepping into the role on 5 November 2012 with a mandate to initiate a strategic review that would effect a positive turnaround. The group had been a takeover target for the private equity firm, Carlyle during 2012. However, following two profit warnings in 2012 and the replacement of David Price as CEO, Carlyle rescinded its interest in Chemring on 7 November – hardly an unexpected move for a private equity company in this situation.
Jim Devine will assume the role of Group Director of Human Resources effective 7 January, reporting directly to Papworth. He will also be a member of the Executive Committee. Mr. Devine’s career in Human Resources includes stints at British Aerospace, the Ford of Europe group, and Centrica. Papworth describe Devine as having “a very commercial approach to the HR discipline” and as having “just the right experience and approach to put in place the sustainable people strategy that our business requires.” That sounds like a move toward greater stability.
Perhaps the more dramatic announcement (though not necessarily any more corporately important), was the appointment of Steve Bowers to the position of Group Finance Director, replacing Nigel Young, who had acted as Interim CFO on 31 July 2012. Chemring’s Chairman, Peter Hickson, said, “Following Mark Papworth’s recent arrival as CEO, Steve’s appointment is another step in strengthening our executive management team as we commit to rebuilding operational and financial performance and delivering improved returns for shareholders.”
Bowers seems to enjoy the respect of the industry for the impact of his years at Umeco, a major supplier of advanced composite materials for the aerospace and defence sector. The announcement described his efforts there as contributing to the transformaton of the the company’s business “in both scale and focus.”
It is clear to any observer that Chemring is serious about effecting radical change and that Papworth is focused and is not wasting any time to bring investors the returns that they expect. It’s hard to say what will happen on any given morrow, but we can say this for sure: Chemring will be worth watching.
