Shares in SIG PLC (LSE:SHI) dropped 12% in early trading on Friday after the building materials distributor said its chief executive, Gavin Slark, would step down at the end of the year to take the top job at Travis Perkins.
Slark, who joined SIG in 2023, will remain in post through a transition period. SIG said the process to appoint his successor is underway.
The announcement follows Travis Perkins’ confirmation on Thursday that Slark will become its new chief executive from the start of 2026.
Peel Hunt, which rates SIG a 'buy' with a 24p price target, called the move “clearly disappointing news for SIG given Slark’s experience in the sector and the improvements he has made to the business since joining".
However, the broker added that the operational structure Slark has put in place is “robust and devolved by country”, and expects the current strategy to continue.
SIG shares had rallied 25% over the past week with no material news. Peel Hunt said it expected a “material reverse” following the update.
The shares fell 2.1p to 15.9p.