Second coup restores sacked Pegasus chief
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Your support makes all the difference.A SECOND boardroom coup has been staged at Pegasus Holdings, resulting in the reinstatement of Jonathan Hubbard-Ford, who was removed as chief executive just three weeks ago after disagreements over company policy.
Shares in the USM-quoted designer of accounting software held steady at 120p, a sharp contrast to the 42p slump to 86p that greeted the chief executive's departure on 25 November.
City institutions were instrumental in yesterday's manoeuvre, which also involved the resignations of four directors. 'The board was made known of the wishes of major shareholders,' Mr Hubbard-Ford said.
The big shareholders include Prudential, Scottish Amicable, Postel, Touche Remnant, and Advent, the venture capital group, which has a 19 per cent stake.
Neil Pearce, investment manager at Advent and a non-executive director at Pegasus, said: 'We had long discussions with all other shareholders, and the consensus of opinion was that he should be reinstated. I was against his removal at the time it happened.'
The departing directors are Derek Moon, chairman, Tony Barber, Roger Dickinson and John Percival. Mr Barber and Mr Percival, who each earn more than pounds 50,000 a year, are the only two with service contracts.
Had the four directors not resigned, they would have had to face the wrath of the institutions at a show-down extraordinary meeting, which was in the process of being requisitioned before yesterday's news.
Two of the boardroom gaps have been filled by Philip Sellers and Jamie Minotto, managing director of Pegasus Software, the company's main operating subsidiary. Mr Sellers has been elected non-executive chairman, a post he also holds at CSL Group.
In addition, SG Warburg has been reappointed as financial adviser and broker to the company, having been replaced last week by Henderson Crosthwaite.
'This story has everything except sex,' Mr Hubbard-Ford said. 'There is a need for change within Pegasus, which is long overdue. I thought I had that mandate when I became chief executive in May. Unfortunately, there is a very conservative attitude within the company.'
Pegasus is next due to report figures in March, covering the extended 17-month trading period to the end of this month. Mr Hubbard-Ford said nothing had happened to change last month's warning of a small trading loss.
However, he said the company still had cash reserves in excess of pounds 2m and yesterday's moves were part 'of a process of fundamental change within Pegasus'.
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