Low & Bonar shares tumble as chief heads to Fenner

The two biggest fallers on the FTSE All Share index on Wednesday were linked by boardroom departures as Low & Bonar's chief executive quit to become CEO at Fenner.

Shares in Low & Bonar, which makes roofing materials and is supplying Russia's Volgograd Arena to be used in the 2018 Fifa World Cup, fell sharply after Brett Simpson quit after three years as chief executive.

L&B said Simpson would step down from the board immediately but would remain an employee until 30 April 2018. Trudy Schoolenberg, currently a non-executive director was appointed as interim group chief executive.

Move to Fenner

Simpson's departure from L&B was marked by the announcement of his appointment as new CEO at Fenner, which makes conveyor belt components.

He takes the helm at Fenner on 1 May, replacing Mark Abrahams, who temporarily resumed his former role as chief executive at Fenner at short notice in January 2016 and was praised for having returned the company to growth.

Fenner chair Vanda Murray said: "We are delighted to welcome Brett to the Board of Fenner. 

"With his industry background, track record and international experience he will bring deep strategic and commercial acumen and strong general management skills as we move Fenner into its next phase of growth."

Market reaction

Nevertheless, investors in Fenner appeared vexed at the departure of Abrahams, and the shares fell 5.52% to 385p in mid-morning trade on London Stock Exchange.

Shares in L&B were hit even harder after the company also issued a trading update in which a weaker than expected fourth quarter was flagged. Shares in L&B fell 20.3% to 54p.