Top-level changes at MDIS

DAVID HELLIER

McDonnell Information Systems, the computer services company, said that Giles Hemmings, who joined as director of operations in April, has resigned - earlier than expected.

His departure follows Tuesday's appointment of John Klein as chief executive. Mr Klein previously ran a $2bn software operation for Digital. It is believed that Mr Hemmings will have his year-long notice period paid in full.

Mr Hemmings was recruited from Arthur Andersen by Ian Hay Davison, the MDIS chairman. Mr Hay Davison said yesterday that he had brought Mr Hemmings in to the group to "get to the bottom of problems" after it had issued two profit warnings. But Mr Hemmings "never expected to be chief executive," he said.

In August MDIS warned that the group's results for the full year were likely to be substantially below market expectations. Analysts immediately reduced their forecasts from around pounds 13m to around pounds 2m. The company also said in August that Jerry Causley, who led the management buyout from McDonnell Douglas, was leaving the group.

Mr Klein joined the board in June and now succeeds Mr Causley. In his new job, he is expected to play a key role in developing the company's long-term strategy.