Suspended chief executive says goodbye to marketer Fuse 8

The Leeds-based firm revealed a month ago that its half-year results were worse than hoped, and also announced the suspension of chief executive Nigel Hunter.

Yesterday Fuse 8 said: “The board of directors of Fuse 8 plc, the full service digital marketing agency, announces that Nigel Hunter, chief executive officer has left the company with effect from October 1, 2011.”

It added Mark Walton, its chairman, had also taken on the duties of chief executive.

In its statement last month, the company said Mr Hunter had failed to provide the board with an updated review of the company’s performance when requested. He then offered his resignation, which was not accepted at the time.

The company added last month it was not confident of meeting expectations for full-year results.

Fuse 8 also said it had uncovered other unspecified issues, and started its own review.

Fuse 8, which has offices in Leeds, London and Russia, joined the Alternative Investment Market through a reverse acquisition in July 2010.

The company said last month the underperformance meant it was unable to pursue its growth strategy, which had been due to include more acquisitions.

Instead, it is considering delisting from AIM and restructuring in a “significantly lower cost environment”.

Another option is to sell the operating business of the group, leaving a cash shell remaining. However, Fuse 8 said last month it was not considering any offer for the company.

Currently about 81 per cent of the company’s share capital is not in public hands, with the bulk held between Mr Hunter, its founders Mark Walton and Andy Hutchinson, and a staff pension scheme.

The company declined to comment beyond its brief statement yesterday and Mr Hunter could not be reached for comment.

Fuse 8 had been in talks over acquiring a number of businesses, included listed rivals.

In a recent interview with the Yorkshire Post, prior to being relieved of his duties, Mr Hunter said the company had held positive talks with potential investors about helping to fund the next stage of its growth.

He added one of the main reasons for joining AIM was because “we wanted better corporate governance”.

“We wanted to demonstrate that what we said was real so that we can get to larger clients,” he said in the interview in July. “Everything we did was for the purpose of improving our credibility and visibility and (to be) seen to be acting more transparently.”

At the time he said the company planned at least one acquisition this calendar year and a couple the following year.

Fuse 8 has more than 100 clients across the UK, Europe, and the USA. Major clients include Adidas, Arla Foods, Persimmon Homes, Soreen, and UK Trade & Investment.