A former Grampian Industrialist of the Year has quit the board of the company he founded after disagreements with fellow bosses, it emerged yesterday.
Bob Kidd is now taking ITS Tubular Services to court in an attempt to regain control of the business after resigning as chairman and chief executive.
The entrepreneur, who founded ITS Group in 1986, is the firm’s majority shareholder, but does not see eye to eye with the company’s other bosses and owners.
Mr Kidd’s fellow shareholders include US private-equity firm Lime Rock Partners, which invested £34.5million in ITS in 2009.
It is understood that contractual restrictions mean Mr Kidd cannot take control of ITS, but he will go to the Court of Session in Edinburgh next week in an effort to have those conditions lifted.
Mr Kidd, who stays in Cyprus, was chairman before taking on the additional role of CEO last October.
| Bob Kidd: Started firm with £5,000 |
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Bob Kidd was named Grampian Industrialist of the Year in 2011 in recognition of his entrepreneurial contribution to business in the region. The 52-year-old, who was a north-east boxing champion in his teens, began his career as an inspector with Tuboscope in Congo, Africa. He started ITS Group more than 25 years ago with just £5,000. The company now employs 1,300 people worldwide and has annual turnover of more than £100million, while Mr Kidd’s personal wealth is valued at £80million, making him one of the richest men in Scotland. |
A spokesman for Mr Kidd said: “Bob Kidd, past Grampian Industrialist of the Year and founder of the ITS group of companies, regrets to announce that he has resigned from the board of ITS Tubular Services following significant disagreements with the remainder of the board, senior management and other shareholders as to the present and future direction of the business.
“As the founder of ITS and its majority shareholder, Mr Kidd is keen to see the business prosper. To that end, he recently injected around $5million (£3.1million) of his own money with the intention of safeguarding the future and wellbeing of the 1,000-plus employees of ITS.
“Mr Kidd also remains engaged in a court process to regain control of the business.”
The spokesman added that the 1,300 jobs at ITS, including 75 in Aberdeen, were not immediately at risk. The turmoil at the top of the company comes despite big rises in turnover and profits.
In its latest financial accounts, ITS reported a 22% rise in turnover to £101.1million in 2011, while earnings before interest, taxation, depreciation and amortisation were up by 28% to £26.6million.
A spokesman for ITS Group said: “ITS Group can confirm the resignation of Bob Kidd as chairman and chief executive. Joe Chandler, the current chief operating officer of ITS, has been appointed to the role of chief executive officer in the interim period. Mr Chandler will continue to be supported by finance director Scott Milne.”