Johnston Press plc (LON:JPR) saw its shares jump in lunchtime trading Tuesday after a surprise announcement that its chief executive (CEO) would resign and be replaced by the current chief financial officer (CFO).
The publishing firm, owner of the Scotsman, Yorkshire Post and the i, said current CEO Ashley Highfield would step down from early June for “family reasons” and would be replaced by CFO David King, with a new finance head to be announced “in due course”.
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Highfield’s resignation comes before a refinancing deal that could determine the fate of the group as online news outlets continue to put pressure on print.
The group reported a £300mln loss in 2016 after cutting the value of its papers, with several investors calling on Highfield to resign.
The firm has also seen its value fall more than 90% since 2014, while Highfield's pay packet grew 45% last year to £808,000, including a £250,000 bonus which he said he will no longer accept until the company completes a restructuring by next April.
Shareholders reacted to the resignation positively, with shares rising 9.2% to 8.9p.
Commenting on the resignation, analysts at Liberum said that King would be regarded as "a safe pair of hands who understands the company".