黑洞社区

Mark Andrews, former chief executive of NG Bailey, was the victim of a cost-cutting drive at the M&E specialist, sources close to the situation have revealed.

Andrews (left) abruptly parted ways with the 拢600m-turnover company last week, as part of what it called a 鈥渕utual and amicable鈥� split. He was replaced by finance director Chris Newton.

NG Bailey, owned by the Bailey family, said last week that Andrews鈥� departure had come after he had completed a plan to slim down and restructure the business. However, one source said his exit was part of the restructuring process rather than prompted by its conclusion.

The source said: 鈥淣G Bailey was looking to cut its cloth to suit the current environment and as far as they were concerned that meant the knife unfortunately also had to fall on Mark.鈥�

In a further cost-cutting measure, Newton, who is a board director, will not be replaced as finance director. The firm said: 鈥淒uring Chris鈥� tenure as acting chief executive, the function will be covered by existing resource within NG Bailey.鈥�

The source added that the decision had been taken quickly, which appears to be backed up by the fact Andrews has not lined up a new role. In a statement this week he said he was 鈥渃onsidering a number of options鈥�. He reiterated the fact it was a mutual split, and said he would leave at the end of November.

NG Bailey denied the suggestion that Andrews had left as part of the restructure and said his exit had been pre-scheduled.

Newton said: 鈥淢ark worked for NG Bailey for nearly six years, a term envisaged at the start of his tenure. Over the past year, Mark has led a right-sizing programme. With this in place it therefore seemed like an appropriate juncture for him to pass on the overall leadership.鈥�

In the year to 27 February, the company boosted turnover by 14% from 拢525m to 拢600m but made a pre-tax loss of 拢10.8m after writedowns.

Trimming from the top

NG Bailey鈥檚 overheads in year to 27 Feb

Total directors鈥� pay
拢1.6m (2008: 拢1.8m)
Average pay of four directors
拢408,750 (拢450,750)
Highest paid director
拢659,000 (拢831,000)
Staff costs
拢161m (拢149m)
Staff number
3,898 (3,884)
Average gross salary
拢41,204 (拢38,470)