A boardroom row at British airline easyJet escalated today as the company said its high-profile founder and non-executive director Stelios Haji-Iannou had refused to approve its annual accounts.
In a statement attached to easyJet's full-year results, 27 per cent shareholder Mr Stelios said he disagreed with some of the airline's accounting policies relating to the recent acquisition of GB Airways.
"I regret to inform you that as a director of easyJet I am unable to approve the annual accounts," he said the statement, adding his disagreement related to the valuation of parts of recent acquisition GB Airways - including aircraft and slots at Gatwick airport near London.
EasyJet shares had slumped 16 per cent to 235-3/4 pence by 9.54am, while the FTSE 250 index of midrange British stocks was down 2.8 per cent.
Stelios also repeated demands for the payment of a dividend and for the appointment of two new non-executive directors of his choice, although he said his stance was not an attempt to return to power and backed current chairman Colin Chandler.
EasyJet Chief Executive Andy Harrison said Stelios' concerns over the accounts had been discussed but then approved by the company's auditors PriceWaterhouseCoopers.
"The concerns Stelios has raised are not new news - they have been considered by management, the audit committee and auditors," he told reporters. "It is the board's view that it is premature for the company to be thinking about a dividend at the point in the cycle we are now in," he added.
The dispute between Mr Stelios, who had stepped down as chairman in 2002, emerged last week as he called for the payment of a dividend and a more cautious growth strategy.
Harrison has moved to cut the extent of easyJet's growth plans ahead of the impending recession, deferring four aircraft orders due in 2010 for a further two years.
"The fleet size in 2011 will be 197 (down from a previous target of 200), but it is possible it could be lower," he said, adding the group's 315-aircraft plane order with Airbus remained flexible and the group's cash position stood at £863 million.
Reuters