Engineering support services group Redhall said chairman and founder David Jackson is to step down with immediate effect as the group announced an underlying annual loss of £1.6m.
The Wakefield-based firm said that following a strategic review by the new management team, Redhall will focus on its high margin manufacturing division.
It will also reduce the volume of low-margin contracting operations, initiate a £1.2m cost cutting programme and simplify the management structure.
The group said it has secured bank support with facilities extended to November 2016 as debt levels are expected to reduce with improvements in working capital.
Analyst Andy Smith at Charles Stanley said: “While the new strategy is welcome, the issue for Redhall is to re-build credibility and restore investor confidence as this is the fourth year in a row it has reported a declining pre-tax profits – over the last 12 months the shares have declined by 71 per cent.”