AGGREKO shares have risen 1.5 per cent following a shake-up of its structure which will see two senior executives leave its board.
Debajit Das, regional director for Asia Pacific and David Taylor-Smith, regional director for Europe, Middle East and Africa, will both be stepping down.
The changes are the first major strategic decisions made public by chief executive Chris Weston since he joined the business in January.
The Glasgow company, which provides temporary power generators and cooling units, is moving from a regional geographic structure to two global business units.
It said Aggreko Rental Solutions will focus on developed markets while Aggreko Power Solutions will target developing economies.
Mr Weston is to run Power Solutions on an interim basis while a new head of that arm is recruited with Asterios Satrazemis, currently regional director for the Americas, to take over at Rental Solutions.
Mr Das and Mr Taylor-Smith will be staying with the company for an unspecified period of time before they leave. No details were given on what compensation packages they may receive although Aggreko's annual report states all executive directors have a 12 month notice period. Mr Das was paid more than £727,000 in 2014 including bonuses and benefits with Mr Taylor-Smith getting almost £611,000.
Mr Weston is scheduled to give a major strategy update alongside the presentation of half-year results later this summer.
He said the structural change would help improve efficiency across the group and added: "In recent months we have been conducting a review into our business priorities and I look forward to sharing the output of this review on August 6.
"As part of this process, we have taken the decision to reorganise the business to be as efficient and as effective as we can be for our customers and our markets."
Mr Weston went on to thank Mr Das, who has been with Aggreko since 2006, and Mr Taylor-Smith, who joined in 2013 after holding senior positions at G4S, for their support since he started in his role.
The changes were generally greeted positively by investors with shares closing up 22p at 1488p.
Will Hedden, dealer at London Capital Group, said: "Following a management restructuring shares in the power provider are bouncing away from long term lows."
Analysts were also upbeat in their coverage. In a note brokers at Citi said: "We view this as a positive, pro-active change by Aggreko's new CEO, which could improve internal efficiencies and market focus."
JP Morgan Cazenove said: "[This] news does not look that material but perhaps shows how Mr Weston is exercising his influence on the group in terms of people and structure. We also think the division along business rather than regional lines does make the group simpler to run.
"On the positive side, we think the temporary power industry is attractive long term and Aggreko's shares have relatively de-rated. On the negative side, we think the underlying markets still feel sluggish, as economic and geopolitical issues weigh on some emerging market customers which could delay signing orders."
Andrew Brooke, from RBC Capital markets, said most investors will be keen to hear more from Mr Weston when he unveils the results of his strategy review.
He said:"We don't think there will be any revolution but think he will look at the power projects' cost base, will look at costs in general, especially procurement and will look at product development and will clarify the balance sheet strategy."
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