Advantage Group’s latest six monthly results are out and are no less controversial than the previous announcement.
Advantage will re-organise itself into four separate divisions each with its own CEO. The current managers for each group will step up to the new roles.
An overall group managing director will be appointed to oversee the entire business, however current CEO Greg Cross will not be taking up that role. Instead he will remain a director on the board but will no longer have any day-to-day role with the company.
“The board accepts Mr Cross’s assessment that there is a need for a different leadership style in this period which is more suited to a process-driven business,” says chairman Evan Christian. Cross will stay on as CEO while conducted an executive search for the GM role.
“This is something I guess I’ve been thinking about for a little while. The company’s been through dramatic growth and now the business has to enter a new phase,” says Cross, who believes the company will move away from “growth from acquisition” to a more “organic growth”.
New to the board is former Countrywide Bank MD, David Wolfenden. He ran Countrywide Bank from 1992 until its purchase by Lloyds TSB in 1998. Since then he has been working with the Asian Development Bank and the World Bank as well as the International Monetary Fund. Wolfenden is already on the board of several companies, including AMI Insurance.
Advantage Group itself has announced a profit after tax of $386,000 for the six months to the end of December. The same period in 1999 saw Advantage report a profit of $2.16 million.
The operating profit for the period was $2.297 million and so-called “goodwill” write offs were $3.056 million which include costs and profits from the sale of its interests in e-tailer Flying Pig and venture capital firm Strathmore.