RMC's new chief wields the axe

The new chief executive of RMC, the world's biggest ready-mixed concrete maker, axed two directors yesterday as he warned of weak performances in the company's core British and German businesses.

The new chief executive of RMC, the world's biggest ready-mixed concrete maker, axed two directors yesterday as he warned of weak performances in the company's core British and German businesses.

David Munro, the chief executive since January, said Mike Foster, who was in charge of RMC in the UK - its third largest market - would step down along with Graham Clark, who oversaw the German division.

The two will be kept on as advisers until the end of the year. Their pay-offs are being negotiated by the company. They were both on one-year contracts, and Mr Foster was last year paid £428,000 while Mr Clark received £362,000.

Shares in RMC fell 2p to 588p after it warned of a "disappointing performance" in the UK, due largely to a decline in demand for asphalt after lower spending on roads. While demand in Germany could fall by as much as 5 per cent this year, the market was recovering gradually, RMC said.