Bulmer boss falls on sword
Mike Hughes, chief executive of cider-maker Bulmers, has resigned following the discovery of a £3.3m black-hole in the books.
The accounting error followed four profits warnings in a year.
Yesterday, moments before the company's annual general meeting, Mr Hughes fell victim to a boardroom coup.
Bulmers chairman Will Samuel acknowledged the company was in a "very, very unsatisfactory position" adding: "The board indicated it had lost confidence and Mr Hughes resigned.
"Each member of the board has obviously considered what has happened since Monday."
Shareholders waiting at Hereford's Courtyard theatre were told the scheduled annual general meeting had been adjourned because of Mr Hughes departure.
Analysts expressed concern about the future of the heavily indebted firm. Stuart Price of WestLB Panmure said its gearing, at 177 per cent, was untenable.
"What we're seeing is the gentle art of implosion," he said.
The ex-Bulmers boss took the helm in 1998, since when, the company has made an ill-fated foray into South Africa and embarked on expansion through America.
Mr Hughes was on a two-year contract. Last year he was paid a salary of £302,000 and a total package of £438,354 including bonuses.
Bulmers, which makes Strongbow and Scrumpy Jack, has seen shares plummet 60p in three days, following the news of unidentified costs.
This was after Bulmers issued four profits warnings - announcing its financial figures would be below expected levels - in 12 months.
Directors announced that a final dividend, due to be paid on September 30, had been delayed until Deloitte & Touche completed an investigation into the company's finances.
Colin Brown, a non-executive director, has been put in temporary charge until a replacement for Mr Hughes is found.
Related articles:
Bulmers uncovers £3.3m black hole in accounts (10 September 2002)
