Hodgson resigns from Ronson

Howard Hodgson, the man who helped create Britain's biggest undertaking group in the 1980s, has abruptly resigned as chief executive of Ronson, his latest quoted vehicle, after the lighters group warned that it would plunge to around a pounds 2m loss for last year. The figure is double the amount the group said it would lose three months ago and sent the shares down 2.5p to 14p yesterday, an all-time low. At that level, they are just above half the 25p a share at which Ronson raised pounds 10.4m in a rights issue in November.

It is the second of Mr Hodgson's business ventures to turn sour since he made around pounds 7.5m selling his funeral business in 1991. He was heavily criticised after the collapse in March 1993 of five ventures, ranging from franchised computer accounting systems to life assurance, which he had backed, losing all the pounds 1.2m put up by 80 franchisees.

Mr Hodgson, who is to be replaced on an interim basis by David Clipsham, said yesterday: "Having given the matter much thought, I have decided to step down. I am most proud of the recreation of Ronson as a world brand and of the UK, international and duty free markets in the last three years, but I think it is time to hand over the reins."

The chief executive was paid a salary of pounds 150,000 on a two-ear contract, but the company suggested he was unlikely to receive a pay-off anything like the indicated maximum of pounds 300,000. Alan Kilkenny, a non-executive director representing one of the underwriters of November's cash call, said: "The manner in which he resigned suggests there is going to be a sensible arrangement." Asked if there had been any pressure from the rest of the board for Mr Hodgson's resignation, Mr Kilkenny said that had not been necessary.

Christine Pickles, corporate development director, is also to leave the group at the end of the month and both the latest departures follow the resignation of David Moffat, finance director, in November.

Mr Kilkenny said following the appointment of a new finance director in April, Laurie Todd, a number of older debts had materialised which had been classified as requiring bad debt provisions. The auditors were looking at the company's books and the figures had yet to be fully finalised, he said. Part of the earlier losses related to problems as a result of last year's fire in the Newcastle factory.

Mr Clipsham, who joins as acting managing director, trained in marketing at Procter & Gamble and had a number of appointments, culminating in a buy-in of the publishing interests of Pentos. Mr Kilkenny said Mr Hodgson's "flamboyance has given a much needed push to the [Ronson] brand, but it now needs some sane and sensible marketing work".

Shaun Dowling, formerly an executive with Guinness, who was to become non-executive chairman now becomes executive chairman. Mr Dowling, who acquired 2.5 million shares in the rights issue, has a 3.7 per cent stake in Ronson. Mr Hodgson retains just under 2 per cent.