UPDATE: QinetiQ Appoints New CEO As Love Departs
October 29 2009 - 5:57AM
Dow Jones News
U.K. defense technology company QinetiQ Group PLC (QQ.LN)
Thursday announced that Chief Executive Graham Love will stand down
next month and will be replaced by Leo Quinn, formerly chief
executive of commercial security printer and paper maker De La Rue
PLC (DLAR.LN).
Love, 55 years old, who has been at QinetiQ for eight years, and
four years as CEO, is due to stand down Nov. 30, according to a
statement from the company. No reason for his departure was given,
but the succession has been planned for about a year.
Quinn, who is 52 years old and has a track record in Europe and
the U.S. for turning around businesses and creating shareholder
value, will join QinetiQ Nov. 16.
Neither Love nor Quinn was available for comment.
"Its great news for the company but bad news for existing
management," said one analyst. He said that Quinn had a great track
record, whereas QinetiQ hah been criticized for not generating
shareholder returns.
Investors welcomed the news. At 0847 GMT, QinetiQ shares traded
up 8 pence, or 5.7%, at 151 pence, making it the second-biggest
gainer in the FTSE 250 index, which traded up 0.2%.
QinetiQ's management has been criticized by investors who have
seen the value of the shares shrink as much as 30% since the
initial public offering in 2006. The company's IPO price was 200
pence a share.
Quinn is the latest addition to QinetiQ's new management team.
It already has appointed a new finance director and a new chairman
is due to take up his post at the next annual general meeting.
He departed De La Rue, the world's largest banknote printer,
Dec. 31 after reducing its exposure to the retail banking sector
with the sale of its cash systems division. He also initiated a
return of capital to shareholders.
Quinn previously held positions at Invensys PLC (ISYS.LN) and
Honeywell International Inc. (HON) and sits on the board at Tomkins
PLC (TOMK.LN).
-By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 8237;
jonathan.buck@dowjones.com