Stefan Kay will retire from Inveresk in March after 12 years as managing director, and chief executive and chairman William Goodall will stand down at the groups AGM in April.


The news came as Inveresk issued its preliminary results for the year ending 2 December 2000, which reflected a mixed trading climate.


Finance director Gerard Cassels said that it had been Kays intention to retire last year, but he wanted to leave with the company in a better trading position.


Although sales increased 4% to 117m over the year, pre-tax losses hit 8.6m, which the group put down to the increase in raw material prices and difficult trading conditions, particularly the devaluation of the euro and strength of sterling.


Cassels said the losses had not been helped by the 71 jobs that went at Caldwells in October last year, which also saw one paper machine shut down and an exceptional reorganisation charge of 2.4m.


But he pointed to better trading at the end of the year and into the early part of this year, resulting in a slight improvement in trading conditions.


The groups bankers have also increased its lending facilities to 26m, which Cassels said was a clear sign of their support.


We have the foundations now to go forward after coming through what has been one of the worst periods the industry has experienced, he added.


Non-executive director Brian MacDonald has been named as Goodalls successor, while Inveresks Nominations Committee has started the process of finding a successor for Kay.


By Andy Scott