Free-to-air broadcaster ITV (ITV) ticks up 0.1% to 155.9p as it announces current Micro Focus (MCRO) finance chief Chris Kennedy will replace the retiring Ian Griffiths in February 2019.
The announcement comes at the beginning of an important week for ITV which is poised to report its third quarter trading on Wednesday (7 November) and potentially provide guidance on the final three months of the year, which obviously includes the crucial festive period.
Kennedy and ITV chief executive Carolyn McCall worked together previously at EasyJet (EZJ) and presumably this supported his candidacy from what chairman Peter Bazalgette describes as a ‘very strong short list’.
Crucially he also has media experience from his 17 years at record label EMI, working in a number of capacities.
‘HEAVYWEIGHT REPLACEMENT’
AJ Bell investment director Russ Mould says: ‘Broadcaster ITV looks to have secured a heavyweight replacement for well-respected retiring finance chief Ian Griffiths.
‘The appointment of Chris Kennedy may initially look a bit odd given he presided over a major profit warning at his current employer, software firm Micro Focus.
‘But given that said warning occurred just two months into his tenure, blaming him would equate to shooting the messenger.
‘Instead shareholders may be enthused by his previous experience at technology firm ARM and EasyJet where he, alongside his new boss Carolyn McCall, presided over strong returns for shareholders.’
Shore Capital analyst Roddy Davidson reiterates his ‘buy’ recommendation on ITV. He says: ‘We view this as a positive appointment: Chris Kennedy has an impressive CV / skillset and the fact that he and Carolyn McCall have worked together successfully in the past bodes well for his ability to add value to the process of re-energising the group’s growth potential.’
