The chief executive of HSS Hire Group (LON:HAS) is stepping down just days after the supplier of equipment and tool hire reported a wider annual loss.
John Gill is leaving after eight years at HSS, which last week reported a loss before tax of £17.4mln for the year to 31 December 2016, compared to £13.8mln the prior year.
Shares dropped 5.39% to 60.55p in early trading.
HSS said in a statement the search for a new chief executive is under way.
Chairman Alan Peterson said: “As CEO from September 2015 he has led the company through a period of significant change as we implemented our new operating model. With this work now largely complete, the focus shifts to driving sales growth through the new network and the board believes it is the right time to look outside the business for a new CEO who can lead this next phase of our recovery.”
Since its 2015 initial public offering, HSS has issued a string of profit warnings and its shares have lost 70% of their value as challenging market conditions gripped the UK construction industry.
In its full year results, the company blamed the wider loss on exceptional costs of £17mln relating to investments made into its new distribution network. The company scrapped its final dividend for the year as it focused on reducing net debt.
Revenue nevertheless rose to £342mln from £312.3mln, driven by growth in the services division and in existing key account customers.
In an effort to turnaround the business, the company has been undergoing a restructuring with the closure of branches and distribution centres in the UK and the launch of its National Distribution and Engineering Centre to replace its former hub.