News
Cheetham steps back at Quercus
14.11.08 | Catherine Neilan
Anthony Cheetham has stepped down from his role as executive chairman of independent publisher Quercus after two years in the position, taking up a non-executive role within the firm. Quercus has also said it is looking to raise £1.75m of additional funds from existing shareholders.
Cheetham will remain "a significant shareholder", owning some 9.84% of company equity. Cheetham said: "The group has seen transformational growth since flotation in October 2006 and I'm confident that we have a strong team in place to continue to drive the group's strategic vision."
Taking on the role of non-executive chairman was, he said, "a natural progression to ensure a stable transition into the next stage of group development".
Mark Smith, chief executive of Quercus, said Cheetham would be "focusing more on the future strategy of the company, and the overall look of the publishing programme".
Recently-appointed David North, as managing director of the trade division, will take on Cheetham's former "day to day" responsibilities, which includes heading up a team of 20.
Quercus has also announced it is looking to raise approximately £1.75m "to provide the company with additional working capital and . . . also strengthen its balance sheet" by issuing 5.8m new ordinary shares. Each new share is being sold for 30p and is only available to existing shareholders. The firm, which is listed on the secondary market Plus, is currently trading at 27.5p per share.
Brand management company Pentland Group, which currently owns slightly less than 20% of Quercus' equity, has "conditionally undertaken" to purchase the balance of any remaining shares. But Smith said he was confident there would be a good response to the offer, despite the inclement economic climate.
"The new funds coming in will help us gear up for 2010 and beyond," he added. "It has always been part of our financial plan to get a further injection of equity at this time. It is unfortunate that it has been a difficult time economically, but we have got it and we are very pleased."
An EGM to formalise the share offer will take place on 1st December. The offer closes on 5th December.
Quercus is also planning "marginally to decrease the number of trade titles published" next year, in both hard and paperback editions, from 184 this year to 170 in 2009. However, by 2010, this should have increased to 200.
Smith said: "If we thought the environment was going to be more conducive, we would have stepped [the programme] up for 2009, but we are keeping it for 2010."
