Remaining directors quit SSL
Two more executive directors have resigned from SSL International following an earnings investigation and a trade loading review which is likely to cost the healthcare company £50m.
Dieno George and Graham Collyer were the only remaining executive directors on the board during the period currently being investigated by KPMG forensic accounting for overstated sales and profits. The makers of Marigold gloves and Durex condoms said on Wednesday their resignations were accepted by the board with immediate affect.
SSL is also undergoing an internal review into £63m worth of excess stock purchased by customers which could cost the company £50m.
During this period, George was acting chief executive for one week after Iain Cater was asked to step down, returning to his role of managing director when Brian Buchanan was hired to head SSL. Graham Collyer was the group’s technical director.
George and Collyer issued a joint statement saying: ‘In view of the announcement made by the company on 24 May 2001 into apparently overstated sales and profits, we feel that it may be in the best interests of the company and its stakeholders that we now leave. There can be no question of impropriety on our part, and we will be negotiating appropriate termination arrangements in due course.’
Chief executive Buchanan said: ‘I understand why Dieno and Graham feel they need to take this action. Under the circumstances, it is appropriate. Interim solutions are already well advanced in order that any impact on the business is minimised.
‘There is a strong team below board level, and I am confident that they will rise to the challenge,’ he added.
Links
KPMG probe £50m stock error at SSL
Condom company makes £50m error