LONDON (Alliance News) - The battle between housing maintenance contractor Lakehouse PLC and its founder stepped up on Friday as the company's activist investors released statements on why they are seeking to shake-up the company's board.
Steve Rawlings, Lakehouse's co-founder, and Slater Investments Ltd requisitioned a general meeting of the company in March calling for the removal of three non-executive directors. A meeting on the proposals will take place on April 19.
Rawlings and Slater, which hold a collective stake of around 5.0% in the business, are seeking to remove Chairman Chris Geoghegan and non-executive directors Jill Ainscough and Johnathan Ford.
The requisition proposes the three are replaced by Rawlings, Ric Piper and Robert Leggett. Piper sits on the boards of recruiter Matchtech Group PLC and engineering and environmental consultancy Waterman Group PLC.
Lakehouse, in its response to the requisition in late March, said the parties behind the requisition have "not provided any information in relation to their strategic vision" for the company. It said an independent board for the company, with no significant shareholder representation "represents the best corporate governance structure" for its shareholders.
Lakehouse added the lack of involvement Rawlings has had in the group since 2012 and track record as a director since then, plus a lack of experience on the boards of listed companies, "does not suggest that he has the necessary skill set to be able to provide a meaningful contribution."
Lakehouse added the requisition has "caused unnecessary disruption" and uncertainty at a time when the board wants to focus on the trading operations of the company.
On Friday, Slater and Rawlings published a letter sent to Lakehouse shareholders detailing their reasons for seeking to shake-up the board.
The pair said Lakehouse's history as a public company - it listed in London in March 2015 - has been "short and disappointing", topped by a profit warning in February which wiped out more than half its market value. Slater and Rawlings said they "do not believe that the board has a firm grip on the company and its prospects."
"We believe that our three candidates for the board will bring much needed perspective, experience and energy to the company and enable it to realise its potential. We believe the proposed candidates will be able to identify quickly action that is needed and to develop, with the executives, a strategy to restore shareholder value," the pair said.
In addition, Slater and Rawlings said Lakehouse's board, in its response to the requisition, "did not address its own disastrous stewardship of Lakehouse and failed to offer any positive reasons why it deserves your support."
Shares in Lakehouse were down 1.0% to 50.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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