RMC directors go in board reshuffle

CONCRETE maker RMC's newly installed chief executive David Munro axed two executive directors today as he warned profits would halve in the group's UK business at the half-year mark.

Munro blamed a 10% decline in demand for asphalt in the UK after lower spending on roads by the Highways Agency. This and stoppages at RMC's plant in Rugby means profits for the six months to 30 June should be 'only slightly more than half the £41m' reported last year.

Stronger than expected performance in the rest of the world, notably the US and France, have more than offset weak British trading however, meaning overall interim profits should still be 'significantly in excess' of the £50.7m made last year with earnings recovery still 'on track'. RMC shares fell 3 1/2p to 586 1/2p.

Munro gave details of a group-wide executive reshuffle which sees Mike Foster and Graham Clark leave the board as directors but stay on as advisers to the end of the year. The pair are on one-year contracts and pay-offs are under negotiation. Foster's total pay package last year came to £428,000 while Clark's totalled £362,000.

A replacement is being sought for Foster who oversaw the UK business while Clark's German responsibilities go to his subordinate Stephan Brock who moves up to the executive committee.