Marshalls’ chief to pave the way for a successor

Mr Holden, 53, is credited with steering the group through the worst economic downturn in living memory.

He joined Marshalls in 1986 and was appointed chief executive in 2004.

“The business is in reasonable order,” said Mr Holden. “By this time next year we’d like to see growth in the market and on a positive trend. It’s time for someone else to pick up the reins. I’ve been chief executive for nearly 10 years. The hours and the pressure are significant and it’s appropriate for me to have a fresh challenge.

“I’m 53 now. I shan’t retire totally. I’m a non-executive at KCom. I’d like a couple more non-executive roles – Yorkshire companies would be ideal,” he added.

The Huddersfield-based group said the process of finding a suitable successor is under way and it has appointed head-hunters to help it find and review both internal and external candidates.

“There’s a proper process underway that will allow things to be done openly,” said Mr Holden.

Marshalls has traditionally hired from within its own ranks and Mr Holden was running the landscape products part of the business before his promotion to chief executive.

During his time at the top he oversaw record profits during the years from 2004 to 2007.

“The world changed in 2008. I wasn’t alone in having to deal with that. Since 2008 it’s been more difficult and as an executive team we’ve faced up to that,” he said.

The group’s chairman Andrew Allner said: “Graham has worked tirelessly for Marshalls for 26 years, the last nine of which he has been chief executive.

“I would like to thank him for his leadership and stewardship at a time of significant change in our industry. On retirement Graham will leave Marshalls as a strong brand with market-leading positions and a reputation for quality and integrity.”

He added that Mr Holden’s decision to tell the board well in advance of his retirement would allow the group to find a successor in an orderly and timely manner.

The group said it is trading in line with current market expectations and it will issue a trading update on the day of the AGM on May 15.

Analysts viewed Mr Holden’s departure as a blow for the company, but said his decision to stay on for up to a year should ensure a smooth handover.

Analyst Jon Bell, at Shore Capital, said: “Graham Holden has been an excellent CEO, particularly during a period of highly-challenging market conditions throughout which he has taken the necessary steps to promote and protect the company’s best interests.”

He added that his departure will present significant challenges to the company.

“Graham Holden will leave Marshalls in good shape, in our view, having taken decisive action during the height of the downturn, and maintaining Marshalls’ profitability at a time when many of the company’s peers have not. In addition, as he has provided up to a year’s notice of his departure, the company’s non executive directors, who are leading the process, have considerable time to recruit/select his successor.”

Analyst Rachael Applegate, at Panmure, said: “We view Graham’s departure as a loss for the business, with the current management team responsible for ensuring the business is very well placed, financially and operationally, despite the difficult market conditions over the past few years.

“With plenty of time to find a successor, we believe a smooth handover will ensue. We maintain our ‘hold’ recommendation for now, but we believe that the business is extremely well placed to take advantage of economic recovery in the UK.”

Mr Holden said that after his retirement from the business he hopes to spend more time with his wife Nicky and two sons who are both at university. The family live in Harrogate.

Marshalls fell into the red in 2012 as wet weather and the weak economy forced a costly overhaul.

A £21.5m restructuring charge pushed the group to an £11.2m pre-tax loss in 2012, versus £13.7m profits a year earlier.

The firm, which supplies products ranging from limestone slabs to steel bollards, cut its workforce by 15 per cent in 2012. Marshalls ended the year with 2,050 staff, down from about 2,800 in 2007.

Revenues fell 7.3 per cent to £309.7m from £334.1m a year earlier as the second-wettest year on record wiped £13m off sales.

[email protected]