Building materials group SIG (LON:SHI) has parted company with Stuart Mitchell, its chief executive of four years, after warning its UK business had seen a major downturn.
In an indication of the potential problems facing the UK economy post-Brexit, the FTSE 250 company said that after good trading in the run-up to the referendum vote, business had since softened markedly.
Delays to commercial projects in particular were a feature with demand for technical insulation in the petrochemical and manufacturing sectors notably subdued.
The UK repair and maintenance market was also challenging.
As a result, underlying profit before tax in 2016 will be in the range of £75mln to £80mln.
SIG has stepped up its cost cutting programme, which will generate savings in excess of £13m this year.
In addition, a further review of its UK branch network and cost structure will save a further £10mln annually, at an exceptional one-off charge of £10mln.
These efficiencies are in addition to previously disclosed targets, SIG said, and means it is now targeting savings of at least £20mln in 2017.
Shares plummeted 21% to 91.3p.