Michael Cairns has stepped down with immediate effect as c.e.o of Publishing Technology after news the company will make a loss in 2015.
In a trading update, the company said Cairns has stepped down "after careful consideration", and has been replaced on an interim basis by chief technology officer David Montgomery.
The move comes after the company said it will fail to meet its full-year financial expectations for 2015.
The financial statement said: “The board has concluded, following their recent review of the sales position with regard to advance and its trading during the summer months, that the second half acceleration in sales will be substantially less than expected due to a number of key pipeline opportunities being delayed in 2016 and one pipeline opportunity has been lost. Although the board believes that the Advance division remains well placed for growth, the company is now not expected to meet current market expectations and is expected to produce a loss for the year.”
The Advance division supports customers royalties, permissions, editorial, production, online sales and marketing, digital and print distribution at the media technologies company.
Publishing Technology said that despite £9m that was raised in May which made the company debt free, its net cash position will fall by the end of 2015 due to the fall in sales.
Non-executive chairman Martyn Rose has now been made executive chairman.
He said: "While the performance of Advance so far this year has been disappointing, we have taken prompt and decisive action to address the issue and the need to ensure that we have the right leadership to drive sales and profit.”
Shares were down 3.4% following the news last night (22nd September.)