Acting B&B boss upbeat for future

1:42pm Friday 18th July 2008

Comments (0)   Have your say »

The search for a new chief executive at mortgage bank Bradford & Bingley is going well, according to stand-in boss Rod Kent.

He said several candidates had already been interviewed and more would be seen in the next few weeks for a role that some would regard as a poisoned chalice.

The former building society has had a bumpy ride since the spring when it adjusted its trading expectations sharply downwards due to the downturn in the housing market.

The value of B&B shares has slumped in recent weeks, at one point reaching a low of 30p as economic conditions continued to batter the banking sector and financial analysts raised questions over its long-term viability.

The board has struggled to find a way of providing a financial cushion for the bank, having had three attempts to launch a rights issue of new shares.

Speaking after shareholders voted to approve a £400m fundraising plan, Mr Kent said finding the right person for the top job was his next priority.

Mr Kent, who joined the B&B board as a non-executive director in September 2002 and became chairman three months later, stepped into the chief executive’s shoes following the sudden departure of Steven Crawshaw for health reasons in June.

Mr Kent said that after Mr Crawshaw, 46, became ill very quickly and decided he could not carry on, he felt it was right for him to pick up the reins.

He said: “Steven’s departure was a hammer blow. I felt it was right for me to take over to focus on ensuring we achieved the rights issue and raised new capital.

“This was not a career move on my part and now that shareholders have approved the rights issue my next priority is to find a new chief executive.

“The headhunters are doing their job and I have already met several people with more candidates to see.”

In spite of the B&B’s problems, Mr Kent said there had been a good level of interest in the vacancy.

He said with the new funding the Bradford & Bingley was in good shape to remain an independent business and would be one of the best capitalised banks in the UK But he admitted if there was a serious approach from a potential buyer then the board would have to consider it.