StockMarketWire.com - Connect said Jos Opdeweegh had resigned as chief executive after the Logistics group reported a fall in profit amid ongoing challenges at its Tuffnells parcel delivery unit.

Jon Bunting, CEO of Smith News, was appointed as interim CEO.

For the year ended 31 August 2019, pre-tax profit fell 18.3% to £23.2m and revenue slipped 4.3% to £1.5bn.

Performance at Tuffnells, a distributor of mixed and irregular freight, was impacted by a flow-through of legacy issues, compounded by lower volumes and an 'especially challenging final quarter,' Connect said.

The Smiths News division, however, put in a stronger performance.

Tuffnells suffered a £45.5m writedown in relation to goodwill, tangible and intangible assets, resulting in a statutory pre-tax loss tax of £37.6m.

Trading at Tuffnells was expected to stabilise in the second half of the year.

'The turnaround of Tuffnells remains our most pressing challenge,' chairman Gary Kennedy said.

'The strategic review of that business and the management changes that we have announced today reflects our focus on delivering improvement and removing its drag on overall group performance.'

At 8:01am: [LON:CNCT] Connect Group PLC share price was 0p at 29.4p



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