Spencer's NEX Falls as Finance Chief's Exit Shocks InvestorsBy
CFO Bridges leaves just weeks after outlining three-year plan
Change is ‘evolutionary’ following Tullett deal, company says
Shares in Michael Spencer’s NEX Group declined on Wednesday after the electronic markets operator announced that Chief Financial Officer Stuart Bridges is leaving, just weeks after outlining the company’s aspirations for the next three years.
Bridges will be replaced by Chief Commercial Officer Samantha Wren and joined on the board by Chief Operating Officer Ken Pigaga, the London-based company said in a statement.
“This move is likely to cause certain investors to question deliverance of the three-year plan which the group outlined May 15, particularly deliverance of the 25 million pounds in cost cuts,” Barclays analyst Daniel Garrod wrote in a note to clients, though he added that Pigaga’s appointment may reassure investors given that he was “instrumental” in drawing up the cost plan presented alongside the full year results.
The moves mark an “evolutionary change,” with NEX now looking at who the right people are to manage the “company that it is now,” following the completion of the Tullet Prebon transaction and presentation of the first results since the deal, NEX Group spokesman Andy Donald said by phone.
NEX Group was formed following the completion of Tullett Prebon’s 1.3 billion-pound ($1.5 billion) purchase of the voice-broker business of Spencer’s ICAP in December. Shares in NEX have risen 41 percent year-to-date despite the company warning of “subdued” trading earlier this month.
The shares were down 3 percent at 654 pence a share at 13:04 p.m. in London trading.