Surface Technology Systems loses its CEO
Smith, who has been STS’ Chief Executive since late 2001, has resigned with immediate effect and is replaced by Mutsuo Mukuda, an STS director representing the company’s majority shareholder Sumitomo Precision Products (SPP).
SPP, which owns around two-thirds of STS’ shares, says that it will provide additional support and backing for the business and also wishes to be more closely involved in the recovery plan.
Mukuda will become Vice Chairman of STS and will move to the company’s headquarters in Newport, UK until a new Chief Executive is appointed.
In a statement, STS acknowledged that its markets have been very difficult and that it has made significant losses. “The Board is committed to returning the business to profitability and good health and to building on the restructuring work already delivered,” said the statement.
The company began life as a subsidiary of Electrotech in 1984 and later merged with two other subsidiaries to form Surface Technology Systems. In 1995, STS was acquired by SPP, a Japanese machine manufacturing and engineering company. STS was floated on the London Stock Exchange in late 2000, which diluted SPP’s shareholding to 66.7%.
In its most recent set of financial results, STS reported sales of £6.8 million ($11.5 million) in the six months ended June 30, 2003. This compared with £17.1 million in the same period in 2002. The difference was due to both the fall in demand for capital equipment in STS’ served markets, as well as a 10.7% fall in the average selling price of machines.
The company’s loss before tax for the first half of 2003 was £4.3 million, compared with £ 8.4 million in the same period in 2002.
