New Tomkins chief on the way

THE 16-month turmoil at industrial group Tomkins that began with the acrimonious exit of Greg Hutchings appears to be calming down, with a new chief executive confidently expected to be in office by mid-February.

Executive chairman David Newlands would not reveal who the new chief executive will be, but said that the appointment was 'imminent'.

Newlands recently cleared the decks with Hutchings in a £6.9m out-of-court settlement following his ousting over alleged use of company flats and jets. Last year, two candidates shortlisted for the post of chief executive dropped out at the last minute.

The dividend reinvestment plan for shareholders is ditched at the halfway stage because of the 'potential volatility to the share price' caused by share repurchases being made by the company. Newlands said the board was considering whether to reinstate the scheme for the final dividend due in October.

So far the group has made 1,000 redundant in the US and 300 at its Dunstable plant. Half-year pre-tax profits were ahead of expectations at £136.5m against £74.9m last time. The interim dividend is held at 4.6p.