Stanley Gibbons SGI today issues an update on the night of the long knives which has cut a swathe through the board and senior management.
Firstly out go the auditors, replaced by a new lot who are not happy that the way in which revenue was previously recognised, was “appropriate”. To allow them to get to grips with things, the annual results for the year to 31st March are having to be delayed.
The company is reconsidering the benefits of offshore status and has decided that the Executive Board should have more UK emphasis, so it is redundancy for the Chief Executive and chief Financial Officer, The group MD appointed on the 31st May has today joined the board and becomes Chief Financial Officer, whilst another newbie, Harry Wilson who joined the board on the 17th May, become Executive Chairman. The former Chairman who stepped down on the 17th May has now resigned from the board, joined by a non executive director who resigns with immediate effect.
Andrew Cook, the author of today’s update can not avoid a certain amount of double think as he proclaims in one breath that the roles of Chief Executive and Chief Financial Officer will become redundant and then immediately announces the appointment of a new Chief Financial Officer. Just guess who it is. Its himself of course.
The new Chairman does have the grace to admit that the restructuring is “unsettling” for all concerned which will perhaps go down as one of the understatements of the year. Some may have regarded devastating as a more appropriate description.
It certainly makes Brexit politics look clean and simple.
One of the few cheering factors in the update is that at least the cost reduction target, has already been exceeded.