AEA shares dive as top man is ousted

AEA Technology, the final privatisation of the last Tory Government, today issued another shock profit warning and turfed out its combined chairman and chief executive.

The shares bombed 37½p to an all-time low of 92½p as Peter Watson, head of the company since its 1996 flotation, was shown the door by the non-executives after the failure of his plan to turn the former Atomic Energy Authority into a business advising the rail industry.

Watson, 61, who made £4m from the sale of train leasing company Porterbrook in the mid-90s, was due to retire next January. He leaves with immediate effect after a revolt by the part-time directors led by Leslie Atkinson, a former BP and Tarmac executive. He is expected to get a nine-month pay-off of about £250,000.

Less than a month after its last warning, the company said 'significantly weaker' results from its rail business will lead to operating profits 'well short of previous estimates'.

Managing director Andrew McCree becomes chief executive. Bernard Bulkin, another ex-BP man, becomes chairman.