Mark Worthington has resigned as CEO at Worthington Nicholls and the firm's board of directors have also announced they expect to write off £6.5m from the group's net assets.
Today's announcement (October 15) made by the board at Worthington Nicholls, sees Mr Worthington resign as head of the group, effective immediately.
The firm, built by his father, offers installations of air conditioning, heating, ventilation and chilled water systems.
Since September 19, Alastair Stoddart has been acting as executive chairman. Candidates to take on the role long-term are currently being interviewed.
The board of directors said 'The board recognises the need to appoint a strong chief executive with public company experience and the skills, commitment and vision to implement and deliver a credible, sustainable growth strategy for the group. Until such an appointment is made, Mr Stoddart will continue as the group's executive chairman.
'In the best interests of the group and to allow the board freely to identify and appoint a replacement, Mark Worthington has stepped down as chief executive and from the board with immediate effect. Mr Worthington will remain with the group, focused on new business development and client relationships'.
Following the appointment of Chris Neilson to the board as interim finance director, the audit committee appointed KPMG to undertake an accounting policy review. KPMG reviewed the group's major subsidiaries of which account for 77% of the firm's turnover and 93% of net assets.
Based on this work, the company's board of directors estimates that write offs totalling £6.5m to the group net assets at March 31, 2007 are necessary.
The group said 'The impact of these adjustments on current and prior years is currently being reviewed. In addition, a substantial write off to the goodwill held on the balance sheet is anticipated'.
On 12 October 2007 the Group had net cash balances of £10.8m.
On September 19, the board announced it was reviewing its accounting policies and would update the market on the likely outcome for the financial year ending September 30, 2007 by the second half of October. The strategic and operational review involving KPMG is ongoing.