CEO RESIGNS AS CARDNO POSTS LOSS
Written on the 29 August 2016 by Brisbane Business News
CARDNO (ASX: CDD) is still in the red this year, with the company posting a $176 million net loss earlier today.
While this current figure improves on last year's $245 million full year loss, it once again reflects heavy industry pressure and poor performance across numerous markets, particularly the American resource sectors.
The FY16 loss was driven by a post-tax non cash impairment charge of $154.3 million and the consequences of discontinued operations, primarily overseas.
Citing an offload of key US-based subsidiaries Cardno ATC and Engineering and Construction Services, the company's earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 62 per cent to $42.3 million.
The result also comes with the announcement of CEO Richard Wankmuller's resignation, following his year spent steering the Brisbane company through troubled waters.
Aware of the challenges and demands which now face interim joint CEOs Neville Buch and Gary Jandegian in the coming months, Wankmuller has stepped down due to health considerations and family requirements.
Following a long string of changes within the top role, Wankmuller replaced acting CEO Graham Yerbury in June 2015.
Despite Wankmuller's departure, Chairman Michael Alscher says the newly restructured board has faith in the company, noting that Cardno's results have prompted a complete 180 for operations.
"The new board has a strong sense of confidence in Cardno staff and the skills and projects we deliver on behalf of our clients," says Alscher.
"That said, as a board, we consider the operating structure and previous strategic decisions of the company, which has culminated in the company's recent financial performance, as not appropriate for the future."
Over the next 12 months the board's goal will be to backtrack the past three years of senior management choices, shifting the decision-making focus down to geographic managers.
As a silver lining to the FY16 cloud, Cardno operations in the Asia Pacific region remained relatively stable, with the decline in resource investments largely offset by infrastructure work.
Cardno shares opened this morning at 75c, dipping slightly to rest at a current 74c.
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