Rotork plc (LON:ROR) shares were under pressure after chief executive Peter France resigned with immediate effect.
The manufacturer of industrial flow control equipment said the board and France have mutually agreed that the time is right for a new chief executive to lead a return to higher growth and margin levels in what is “likely to be a generally lower growth macro environment".
READ: Rotork issues profit warning due to contract delays
Rotork will accelerate investment in key areas such as product innovation and customer service to as part of its strategy to boost growth.
Chairman Martin Lamb will assume the role of chief executive until a permanent successor is found.
“The board recognises the more challenging market environment faced by the business in recent times, particularly in the oil and gas sector,” Lamb said.
“The board is now focused on identifying the right leader to deliver the greatest shareholder value from this next phase in the company's development."
Rotork said results for the half year and forecasts for the full year are in line with management expectations.
Shares dropped 5.4% to 238.40p in morning trading.