Shares in international healthcare group Alliance Pharma slumped to a 12-year low after its chief executive spooked investors by announcing he is to step down from the business.
Peter Butterfield, who joined the Chippenham-headquartered group in 2010 and has been CEO for the past six years, will leave on 30 June.
In a statement to the London Stock Exchange, AIM-listed Alliance said he had decided to “pursue other business interests”.
Adding to shareholders’ sense if unease was a further update from the group delaying publication of its 2023 full-year results for a third time.
The firm, which owns a portfolio of products ranging from stomach ulcer treatments to anti-dandruff shampoo, said the audit process remained ongoing and it would provide an update on revised timing “in due course”.
It also reiterated that the details provided in a full-year trading update it issued in January remained accurate. That update said that revenues for the year had risen by 6% at £182.7m.
Alliance, which employs around 285 people across Europe, North America, and the Asia-Pacific region, has transformed itself over the past five years from a business focused on prescription medicines to a fast-growth consumer healthcare company.
Among its top-selling brands are scar prevention and treatment Kelo-Cote, eye care product MacuShield, Amberen, a relief for menopause symptoms it acquired in 2020, and Nizoral, an anti-dandruff medical shampoo brand it bought in 2018.
However, it has also been dogged by management issues. In November 2022 Mr Butterfield, pictured, shocked the market by announcing he was taking time away from the business for personal reasons.
News of his leave of absence, along with a warning over future profits due to an order shortfall, triggered a 42% slump in the group’s share price in one day.
Mr Butterfield, who returned to the role after several months away, will be replaced as CEO by Nick Sedgwick, who has around 30 years’ consumer health experience across European, US and global roles at major multinational companies including Reckitt, Coty and Nestlé.
Most recently he was regional director for UK and Ireland consumer health at British hygiene, health and nutrition brands group Reckitt, during which time he increased revenue and improved profitability in the second largest market for the company.
Prior to that, he worked at US beauty brands giant Coty, holding a number of senior roles including senior vice president for global sales and commercial capabilities, senior vice president sales for the US business and general manager consumer beauty for UK and Ireland.
Alliance said throughout his career, he had worked in multiple countries, always delivering high revenue growth through consumer-centric strategies, high performance teams and excellence in execution.
Alliance chair Camillo Pane, who was appointed in February and who has also held senior roles at Reckitt and Coty, said: “The board and I would like to thank Peter for everything that he has done for Alliance.
“He led Alliance's transition towards consumer healthcare and group revenues have almost doubled since he became CEO.
"We welcome Nick to Alliance and look forward to working with him as he leads the company through the next phase of its growth and development."
Peter Butterfield said: “It has been a genuine privilege to lead Alliance over the last six years through a period of growth and transformation.
“I am very confident that the company is in good hands and look forward to seeing it go from strength to strength."
Nick Sedgwick, who takes over as CEO on Monday, added: “I am really excited to be joining Alliance at such an important time for the business.
“I look forward to getting to know the company in depth over the next few months and working with the management team to deliver the next phase of growth.”
Alliance’s shares plummeted by more than 12% to 29.3p when the two announcements were made on Wednesday – their lowest since 2012. They have since recovered slightly and today were trading at 33.6p.
