4th Jul 2022 17:33
(Alliance News) - The departure of Grafton Group PLC's Chief Executive Gavin Slark after 11 years with the DIY retailer leaves his potential successor with very big shoes to fill.
Slark will continue as CEO & board director of the Dublin-based company until December 31, in line with his service agreement.
"A process to appoint a successor will commence immediately with the support of an executive search firm," Grafton said.
Chair Michael Roney said: "Gavin has made an outstanding contribution to Grafton and provided exceptional leadership over the past eleven years. Under his stewardship the group has further extended its geographic footprint and has been transformed into a portfolio of higher quality and higher returning businesses with excellent market positions and strong growth prospects."
During his time at Grafton, Slark navigated the retailer through a dramatic transformation, making numerous acquisitions in the UK and overseas, such as stair contractor Stairbox and decorating retail brand Leyland SDM.
Analysts at Davy said: "During his tenure he has successfully overseen the reshaping of the Grafton business. This has involved the exit from lower margin, lower return businesses and a focus on assembling a portfolio of higher margin, higher return and differentiated operations.
"This has included the successful expansion of Selco; the acquisition of businesses such as Leyland SDM and StairBox as well as a number of divestments, most notably that of the traditional Great Britain merchanting operation; successful entry and growth in the Netherlands; and, more recently, the acquisition of IKH in Finland. Grafton is also supported by a very strong balance sheet with a healthy level of net cash (ex-leases). Slark will leave a big hole to fill."
Grafton shares closed down 7.7% at 721.60 pence on Monday, the second-worst performer in the FTSE 250.
By Arvind Bhunjun; [email protected]
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