Following the recent trading statement SMC Group came out with an update to shareholders this week regarding the findings of the recent internal business review.

The review provided a series of recommendations to improve the profitability of the Group including the way the Group approaches the winning and execution of projects, the management structure, resourcing and the cost base of some business units.
It actually sounds like the whole business needs fixing!

It reported that whilst some (very few I suspect!) businesses within the Group continue to trade well, others have overheads which are out of line with revised revenue projections. So there is a lot of dead wood and they are all paying themselves too much!

Here comes the big one!
Following the Board meeting (as I said in my earlier blog, I thought it was going to be an interesting meeting) Stewart McColl the founder (and colourful tie man) has resigned and left the Group with immediate effect!

Gordon Watson (Stewart’s right hand man) has also stepped down from the Board with immediate effect but will continue working in a business development role in the Company

The bankers are apparently supportive but they always say that to begin with!

Sir Rodney Walker, the new Executive Chairman appears to be getting stuck in, but given the speed with which SMC has been cobbled together he could have a tough job ahead.

The shares were initially up c9% on the news so clearly there are some out there who welcome the news of Mr McColl’s departure.