Fibre firm FD quits for role at miner

Bradford-based Chapelthorpe, which is controlled by activist investor Peter Gyllenhammar, said Andy Weatherstone will leave the board at the end of the month. He will replace the current finance director of Doncaster-based ATH, Steven Beaumont, on October 4.

Mr Beaumont is leaving to join RecyCoal, the group's land remediation and coal recovery business which is being split from the business.

Alistair Black, chief executive of ATH Resources, said: "We are delighted to welcome Andrew to the board. His wide experience will be of great value as we continue to drive the performance of the mining business forward."

In a statement, Chapelthorpe added: "The company wishes to thank Andy for his contribution to the company during his period as a director and wishes him well for the future."

Last month Mr Weatherstone was one of three independent directors who advised shareholders to accept a 5.1m takeover bid from Mr Gyllenhammar for Chapelthorpe, despite admitting the offer undervalues the fibres maker.

Mr Gyllenhammar has offered 25p a share and wants to de-list Chapelthorpe from AIM. The group makes fibres used in cars, tea bags, carpets, mattresses and concrete.

Shareholders have until September 8 to accept his cash offer. Mr Gyllenhammar needs the support of 75 per cent of voting shareholders to de-list. Mr Weatherstone, 46, has held the post of finance director at Chapelthorpe since 2003. Prior to that, he worked for KPMG and in senior financial positions at Commercial Vehicle Systems and Bostrom.

Seymour Pierce analyst Asa Bridle said ATH had moved "swiftly" in appointing Mr Weatherstone following Mr Beaumont's move.

Mr Bridle said that Mr Weatherstone would bring to the board a wide range of strategic, operational and corporate finance experience.

He added: "With former managing director of surface mining, Alistair Black having already stepped up to the chief executive role and David Port remaining as chairman, the board looks in good shape to develop the mining business after the sale of the regeneration operations."

ATH sold its regeneration business to the newly-formed RecyCoal in July. The company said proceeds from the disposal could total 17m over a seven- year period.

ATH has sold the business for 6.5m in cash, plus up to 8m of royalties and a final payment of 2.5m from the sale of land at the Langton site in Nottinghamshire, which is due in 2013.

ATH will incur a loss on disposal of 800,000, after tax and goodwill are written down by 2.3m.

The shareholders of RecyCoal have committed 40m to the development of the new firm.

ATH is keen to focus on surface mining and stick to a formula whereby it produces around two million tonnes of coal a year and rewards shareholders with regular dividends.