Chesterfield Special Cylinders CEO leaving as firm announces management shake-up and cost-cutting plans
A Sheffield defence industry supplier has announced its chief executive is leaving by “mutual agreement” this week as part of a management shake-up and cost-cutting measures.
Chesterfield Special Cylinders Holdings, which provides gas storage solutions to industries including defence, aerospace and energy and supplies its specialist equipment to submarines and fighter jets, said chief executive Chris Walters will be leaving on Friday, July 31.
Chief operating officer Chris Webster will become managing director and joins the board with iommediate effect. Finance director Sally Millen is also joining the company’s board.
A statement to shareholders said: “These executive management changes recognise the reduced scale and simplification of company operations following the sale of the Precision Machined Components division in October 2024 and the slower-than-anticipated development of the hydrogen storage and transportation market.”
It has also been announced that non-executive director Richard Staveley will be stepping down from his role at the end of September.
The changes will save the company around £300,000 a year and the company said it is “targeting further cost savings of at least the same amount to ensure efficiency and alignment with its focus on growth and development in UK and overseas defence markets, while retaining the ability to capitalise on hydrogen and other market opportunities on a flexible basis”.
CSC is on course for “similar” full-year results to last year when it recorded revenues of £16.6m and adjusted EBITDA of £800,000 and said it expects “modest revenue growth” next year. But the company is dropping potential hydrogen newbuild revenues from its forecasts.
Mr Walters, who has been CEO since September 2018, said: “It has been a privilege to lead Chesterfield Special Cylinders over the past eight years. Following our successful divestments and restructuring, the business is now simpler, more streamlined and sharply focused on its core strengths. I would like to thank the board and our shareholders for their continued support during my tenure, and I wish the team and the company every success for the future."
Mr Webster said: "We remain well placed to grow our UK and overseas defence business, both in newbuild and lifecycle services, while retaining the appetite, flexibility and appropriate cost structure to capitalise on hydrogen storage opportunities as and when they arise.
"As we look forward, on behalf of the management team and wider workforce, I would like to thank Chris for his leadership, his energy, and all that we achieved together."
Chair Nick Salmon added: "On behalf of the board, I thank Chris for all he has achieved over the past eight years and, in particular, for developing the strong senior management team who will now take the business forward. I also thank Richard for his support, insight, and valuable contribution during his tenure on the board."