CHIEF LEAVES AS WOLSELEY PROFITS SLIDE

Hornsby, who leaves with a $1.5million (£900,000) pay-off will be replaced by former boss of foreign exchange business Travelex and chemists chain Alliance Unichem, Ian Meakins.

Wolseley has been badly hit by the global recession and the resulting slump in demand for its core heating and plumbing products. But chairman John Whybrow said the company had been considering a change in chief executive since the start of the year. The company’s shares rose 32p to 1158p.

“Chip has been chief executive for three years and that is quite a long time in a very, very difficult environment,” said Whybrow. “It was time for a fresh set of eyes to look at the business.”

He said the domestic situation of Hornsby, an American whose family remained in the US, was also difficult.

Whybrow expected Meakins to improve the business operationally, while developing a clear, long-term strategy for the next five years.

Market sources speculated Hornsby had gone in the wake of shareholder pressure following the rights issue to prevent a breach in banking covenants.

“We are well positioned,” said Whybrow. “Ian can take time to form his own views of the business.”