EGS confirmed this morning that it expects shortly to be able to announce Nigel Payne’s appointment as its new chairman (subject to NOMAD due diligence), and that four existing board members, including the FD and three non-execs, have resigned. The FD will remain in place and assist an orderly transition to a replacement when found.
From a practical perspective the executive team i.e. EGS founder Elizabeth Gooch as CEO and outgoing CFO Jonathan Kay is still in place providing temporary continuity. The addition of a highly experienced listed company director would be positive and our inference (not confirmed in the RNS) is that Nigel Payne would rapidly seek to reinvigorate the focus on profitable sales growth, part of which would be to appoint new executive and non-executive management. The resignations are potentially disruptive, but from a business perspective not necessarily counter-productive medium term.
Just last week, on 9 June, EGS maintained its expected adjusted profit guidance for the current year and if it achieves our current forecasts we regard the shares as very attractively rated
Nigel Payne has a 30 year plus track record as a director of both listed and private companies and his quoted sector experience includes current roles as Chairman of AIMlisted Gateley (Holdings) plc and Stride Gaming plc, and director of Gama Aviation plc. He was previously CEO of Sportingbet plc, one of the world's largest internet gambling companies.
The departing directors are Jonathan Kay (CFO), Duncan McIntyre (Non-Executive Chairman), Mark Brady and John Brougham, both NEDs.