12th Mar 2019 09:10
LONDON (Alliance News) - Northgate PLC on Tuesday said it will respond "in due course" to a requisition letter received Monday by Crystal Amber Fund Ltd aiming to oust the company's chair.
Late Monday, Crystal Amber Fund sent the vehicle rental firm a requisition notice to hold a meeting at which a resolution will be proposed to remove Chair Andrew Page.
The meeting also will propose the appointment of Steve Smith, a former chief executive of Northgate, as non-executive director.
Crystal Amber, which invests in small and mid-cap equities, said it believed that Page is the "principal driver of Northgate Group's lacklustre performance, both operationally and in generating value for shareholders, since he became chair in September 2015".
Crystal Amber pointed to the period between the first half of Northgate's 2016 financial year to the first half of 2019, in which the company's operating profit fell by 29%, and return on capital employed declined to 6.7% from 12%.
Shares in Crystal Amber Fund were untraded at 204.00 pence, while Northgate shares were up 0.1% at 379.76p.
Related Shares:
Crystal AmberNorthgate