Vermeg has terminated of the employment of Lombard Risk CEO Alastair Brown and CFO Nigel Gurney.
Both Brown and Gurney have “stepped down” with immediate effect from the board of directors of Lombard Risk and all associated group entities.
Additionally, the Vermeg Board intends to effect redundancies in respect of up to three other senior management personnel within Lombard Risk.
The decision was made after Vermeg recognised a “material decline” in revenues from Lombard Risk.
Vermeg acquired Lombard Risk in February and expected an increase in revenue and a turnover of €100 million.
However, the unaudited full year results displayed a material decline in revenues, negative earnings before interest, taxes, depreciation, and amortization, as well as a significant loss before tax, compared to the prior financial year.
In the offer documentation that followed the acquisition, it was stated that Lombard Risk would continue to operate under its existing executive management team within the Vermeg group.
It was also stated that apart from the mutually agreed resignations of Lombard Risk’s four non-executive directors and a limited number of planned redundancies, Vermeg did not intend to make any other material changes.
According to the company, it is now intended that the planned redundancy programme is likely to involve a material number of redundancies within the operational and professional services areas and a limited number of redundancies within the sales and marketing team.
The Vermeg Board noted that, while the scope of the redundancy programme is now wider than had previously been anticipated, “the overall total level of redundancies across the enlarged group, as a result of the implementation of the alternative integration strategy is still expected to be relatively limited and will have no impact on client support”.
