The chief executive of Bath specialist engineering group Rotork has quit with immediate effect after nine years in the job as the firm announced a change in strategy to return to stronger growth.
In an unexpected statement to the London Stock Exchange on Friday, Rotork, a world-leader in the design and manufacture of specialist valves for the oil and gas industry, said Peter France, pictured below, had left through mutual agreement with the board. He had worked at the group for 28 years in a range of roles.
Rotork’s shares fell by around 5% on Friday after the news was announced. Chairman Martin Lamb has taken on the full-time role of executive chairman until a new chief executive is appointed.
The group has suffered from weak margins on its products as a result of the low oil price over the past two years and downturn in its key markets. While the fall in the pound’s value since the EU referendum has eased its problems, some analysts believe it could have done more to cut costs and enter new markets.
Rotork’s statement said the move followed a period of reflection by the board, together with Peter, “on the steps required to foster a return to higher growth and margin levels in what is likely to be a generally lower growth macro environment”.
It said these steps included “accelerating investment in key areas such as product innovation and customer service whilst, at the same time, driving greater efficiencies throughout the business”.
The board and Mr France had mutually agreed that the time was right for a new chief executive to lead these initiatives.
A search firm to lead this process will be selected shortly.
Rotork, Bath’s largest manufacturing company, said its financial results for the half year, and current projections for the full year, were in line with management expectations and will be presented, as previously announced, on August 8.
Mr Lamb said: “I would like to thank Peter for all his efforts and achievements throughout a long and successful career with the company. Rotork is an outstanding business with leading product brands, embedded market positions, strong global representation and great people.
“The board recognises the more challenging market environment faced by the business in recent times, particularly in the oil and gas sector.
“The board is now focused on identifying the right leader to deliver the greatest shareholder value from this next phase in the company’s development.”
Mr France added: “It has been a real privilege to lead Rotork over the last nine years, and to have played such a key part, across many different roles, in the 28 years that I have been with the company. We have built great foundations and I wish Rotork every success in the years ahead.”
Mr France joined Rotork in 1989 as an inside sales engineer. In 1998 he was appointed director and general manager at Rotork Singapore before becoming managing director of the Fluid Systems Division and then chief operating officer.
