SHAREHOLDERS have forced a company chief out after claiming he was not up to the job of managing change.

Simon May, chairman of Whatman, the long-established filtration and medical services company with Maidstone bases in Allington, Springfield and Park Wood, is stepping down after investors named a substitute.

Dr May, 45, was only appointed chairman in April. He had been deputy since August last year.

Dr May said that an "important minority" of shareholders representing 34 per cent of the shares had written to him "naming a particular individual whom they would like to become chairman".

He said: "In their letter, they make no adverse comment on either myself or the rest of the board. However, in the interests of stability of the company going forward and to maintain good working relations with all its shareholders, the board has agreed to appoint a new chairman with long experience of managing change."

Headhunters are drawing up a shortlist of suitable candidates, including the individual - Whatman declined to name him or her - preferred by disgruntled shareholders.

Dr May will stay on as a non-executive director when a successor is found, probably by mid-October.

Tim Coombs, chief executive, denied that the investor pressure amounted to a slap on the wrist for the Whatman board who made the appointment. Directors had not made a mistake, he insisted. It was just a question of investor confidence.

"The directors chose Simon as someone who was perfectly capable of doing the job and I as chief executive know exactly what needs to be done to get this company back on track again," he said.

"He hasn't blotted his copybook and there hasn't been anything untoward that he has discovered or he has done. The simple truth of the matter is that the investors would like to have seen someone with change management experience appointed."

Dr Coombs said the company would not be replacing him with an investors' "crony". He said: "We've got to be very careful of making sure we choose the right person irrespective of whether its their candidate or our own."

He added: "If you have had a record of poor performance as Whatman have had in the past two or three years, then you expect to be under the microscope."

Meanwhile, Whatman reported a fall in operating profits for the first six months of the year to £1.9m, compared to £3.5m in the same period last year. Turnover fell 2.2 per cent to £44.4m.

Dr Coombs blamed tough trading conditions made worse by a marked reduction in pharmaceutical research and development spending.

He warned: "We anticipate continuing challenging trading conditions for the rest of the year, particularly in Pharma R and D and biotech sectors."

However, the paper business was growing, he said, and five more staff would be taken on at Springfield Mill. Company rationalisation was on track and delivering results.

Whatman wants to be a global leader in filtration and separation products used in the pharmaceutical industry, and a key supplier of DNA storage products.

However, the firm, once known for its paternalistic attitude to staff, has had to become more aggressive as its products face global competition. It has changed company culture, shed staff and cut manufacturing overheads.

Whatman suffered a further blow with the decision by an American court to award damages of £2.5 million against the company in an age discrimination lawsuit in New Jersey dating back to 1995.

Dr Coombs called the verdict "absolutely diabolical" and said Whatman would fight it vigorously through the New Jersey legal system. At this stage, no damages are payable.

Whatman shares fell 10p to 82.5p but later picked up to 87p.