Kingspan said yesterday its chief operating officer, Mr Robert Barr, is resigning from the group with effect from October 31st.

Mr Barr, who has been with Kingspan since 1999, is leaving to participate in a private equity syndicate which is investing in a UK business.

Kingspan also said that Mr Danny Kitchen, who has been on the board since 1994, had resigned as a non-executive director due to increased overseas business commitments.

It is understood that the company, which has already made three new appointments to its board this year, has no plans to replace either director.

In June, former managing director of the Irish Dairy Board Mr Brian Joyce and former Ulster Bank executive Mr Tony McArdle were named as non-executive directors. Former AIB chief executive and Aer Lingus chairman Mr Tom Mulcahy was also appointed to the board this summer.

While investors have welcomed the move by the Cavan-based company to strengthen its board, they remain concerned about the decision by Mr Eugene Murtagh to retain the dual role of chairman and chief executive.

However, analysts believe the company may move to resolve this issue and that yesterday's board changes may pave the way.

According to ABN Amro, the changes leave "the path for successorship to the current chief executive, Eugene Murtagh, open to his son Gene Murtagh so that Eugene can focus on the single role of chairman. We expect this to happen by the year-end and believe it will be positively received by the market."