News of the departures of joint managing directors Gerry Mulvaney and Terry Cooper was made in a stock exchange announcement posted after the stock market closed on Friday.

The two resigned following a disagreement over future strategy at the 47m distribution group.

As the market digested the news today, the firm's share price went into freefall, and was down 8p at 38.5p by 1pm. It has since rallied to 41.75p.

Chief executive Mike Hammond said he was "saddened" by the departures but that it was business as usual for the group: "Nobody is bigger than the business. We've got a very good and very strong sales team and people there are able to accept the challenges going forward."

The group supplies consumables for the "big three" plate manufacturers: Agfa, Kodak Polychrome Graphics and Fuji; along with products from a raft of suppliers including Screen, Xerox, EFI, HighWater and BASF.

The news left staff and the industry in shock. Agfa Graphic Systems director Laurence Roberts said he was "flabbergasted", while Fujifilm Graphic Systems divisional director Keith Dalton described the departures as "an absolute surprise". Screen UK managing director Brian Filler said: "I keep saying this industry won't shock me, and then it does."

Mulvaney, who was very much the public face of the group, issued a personal statement this morning. It reads:

"I can confirm that I have resigned as an Executive Director of Litho Supplies Plc.

I made this decision with great regret after nearly 23 very happy years with the company.

For some months now I have been working on a strategy to take the Company forward over the next five years. Unfortunately I have ultimately been unable to secure the support of my colleagues on the Board for my proposals. In the circumstances I felt obliged to offer my resignation to the Board and it was accepted.

I want to take this opportunity to thank all my colleagues at Litho Supplies for their support to me over the years. They will remain foremost in my thoughts and affection. I hope they continue to enjoy the success we have had together in the past.

I would also like to thank our Suppliers with whom I enjoyed strong personal relationships and the many customers of Litho Supplies, with whom I enjoyed regular bantering and bartering.

I now intend to seek another role in this Industry but until then, I plan to get under my wife's feet at home and learn to play golf properly."

• See earlier story Shock as joint MDs leave Litho Supplies.

Story by Jo Francis