John McGrath returns to helm at McGrath
The much anticipated return of John McGrath to lead the McGrath Group has been announced this morning after a shock leak of its profitability emerged overnight.
The stock market was told at 9am this morning that McGrath was headed back to running the company he founded in 1988 in Paddington.
The statement read:
"As noted in November, part of Stage Two of the Company’s structural review examined costs in noncustomer facing roles, including among the Company’s board and executive management level and roles where key expertise was unlikely to be required in the medium to long term. That expertise includes material expansion of Company owned offices and growth-oriented M&A initiatives.
Pending interim executive chairman, Mr McGrath said “Like all shareholders I am very disappointed with the performance of the Company over the last two years.
"Now is the time for a new approach. Despite the challenges we have endured since listing, McGrath remains one of the best real estate businesses in Australia with outstanding talent throughout the Company.
"I am very excited and proud to once again be leading the team in the future.”
“Our investors and team have exhibited great patience and loyalty during this difficult time and I intend to work very hard to repay them for their confidence in the Company.
"I have a clear plan to rebuild momentum but I will let our results speak for themselves from here.”
Chairman Cass O’Connor, who has resigned alonged with non-executive directors Elizabeth Crouch and Cath Rogers, said McGrath is well placed to take back the reigns.
“As Executive Director, founder and major shareholder, John is well placed to transition to interim executive chairman role. John, the Board and the CEO will work closely to effect a smooth transition.”
Nigel Dews has resigned from the board, due to work commitments and as part of the stage two review.
During 2017, Dews was appointed CEO of Message Media, which necessitated his move interstate.
The transition period will allow for the recruitment of additional non-executive directors to fulfil the company’s legal and strategic requirements.
Earlier today it was reported that the McGrath Group Report November 2017 showed McGrath Limited had sunk to a $1.3 million loss as it suffered from falling commission income from residential sales, against the targeted $3.3 million net profit after tax between July and November 30.
The chief executive is set to step down.
Founder John McGrath previously stood down as chief executive in August 2016.
As a result of McGrath's stage two structural review, McGrath CEO Cameron Judson and head of corporate services and company secretary, Morgan Sloper, will leave the company.
Judson, a turnaround specialist and former CEO at recruitment firm Chandler Macleod, resigned after just 18 months in the role. He will remain CEO until at least the publication of full-year results in February.