'Amey boss needs to resign' for City confidence to return

It will take the resignation of Amey's chief executive Brian Staples before the City's confidence in the group returns, said one analyst on Tuesday.

His view followed the news last week that David Miller, Amey's finance director, had abruptly quit his post and that Amey's technology services business has been put up for sale following an internal strategic review.

In March, Amey announced that for the third year running it was restating its accounts, the latest move turning an anticipated profit of £52m into a loss of £18m. The price of Amey's shares has crashed since then from 400p to 130p. Amey had already made moves to stem the tide, releasing business development director Robert Osborne a month ago and with several directors making a grand gesture of buying shares.

An analyst said on Tuesday: "There is still too much uncertainty. Despite having a new finance director in place, a lot might still materialise. Amey has let the [former] finance director carry the can, but Staples should also go."

Amey's accounting methods are now in the hands of Michael Kayser. A former finance director of Laporte, the chemicals group, he currently works for Doncasters, the private engineering components company.

Amey's technology services business could sell for around £50m.