Rodol quits Ministry of Sound

JAMES Palumbo's Ministry of Sound nightclub has moved further away from a stock market flotation following the resignation of chief executive Mark Rodol, the man responsible for transforming the group's fortunes.

The departure of Rodol (who turned losses of £15m in 2002 to profits of £1.7m last year) suggests a float will have to be put on the backburner. This may frustrate venture capitalist 3i, which took a 15% stake in 2001 for £24m.

A spokesman for Palumbo confirmed Rodol's departure but denied there had been any disagreement on strategy between the duo. Palumbo is now 'taking on a more hands- on role', he added.

Palumbo, the son of property developer Lord (Peter) Palumbo, set up the club 13 years ago in a deserted car park near Elephant and Castle. He funded it with £250,000 he had raised from working as a bond trader in the City.

Palumbo had hoped to float the 'superclub' two years ago for more than £200m, but the plan was shelved because Ministry was making heavy losses.

Rodol is viewed as being largely responsible for reviving the group's profits, following a period of costly expansion.

He closed the record label Relentless Records as well as the club's magazine, Ministry, and axed 20 jobs.

As recently as last month, Rodol was saying the club was expected to make £5m pre-tax profits this year.