Greenwood to be ousted at meeting next week

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The Independent Online
STUART Greenwood, the finance director of Spring Ram, is to be ousted at the troubled bathroom and kitchen group's board meeting on Monday, write Robert Cole and Jason Nisse.

The meeting has been called to review the fallout from the group's profits warning last week and the resulting share price collapse. It is expected to confirm the reappointment of Arthur Andersen as the group's auditors, despite the public row that has broken out about just when the auditors warned that profits would be more than pounds 10m below City expectations.

The departure of Mr Greenwood, is seen as an attempt to appease angry shareholders, led by Prudential, which has a 12 per cent stake. He has been convinced by Bill Rooney, executive chairman and founder, that his departure is necessary to restore the City's confidence in the former stock market darling.

Spring Ram hopes that the resignation will satisfy shareholders. It is likely to mean that Mr Rooney will keep his post.

The position of Panmure Gordon, Spring Ram's stockbrokers, and NM Rothschild, the group's merchant bank, is uncertain. Both have yet to decide whether they will stay on as advisers.