Healthy turnaround for Oliver's Real Food
Written on the 29 July 2019 by Business News Australia
Since Oliver's Real Food (ASX: OLI) founder Jason Gunn returned to helm the ship the company's fortunes have improved substantially.
During the fourth quarter the health-oriented fast food business delivered a profit as well as earnings of $161,000.
"This is a direct outcome of management's determination to eliminate unnecessary spending and re-focus the business to delivering a consistently fantastic experience for our customers," says Oliver's Real Food.
"We are particularly pleased with the speed and results of management's efforts and believe the KPI's of the business are now being properly monitored with forward indicators looking positive."
The company was in dire straits before Gunn's return to the role of CEO. Shares were nosediving, profits were slashed, and the company was bleeding out cash.
Speaking to Business News Australia in May, Gunn says that the old management team were proving reckless with cash.
"It seems that the previous management saw themselves as a publicly listed company with loads of cash and there was a certain mode of operation, they thought they should have which was everyone on big salaries, new cars, corporate Amex cards, crazy stuff. Those things are being eliminated," said Gunn.
The company says that it is looking to break-even in the first quarter, "traditionally Oliver's softest trading quarter".
It also says that cash reserves will be at the lowest point in August 2019, but Gunn has already offered to advance funds to the business in the form of a short term draw down facility.
"The transformation that has taken place in this business in the past four months is remarkable," says Gunn.
"We have been through a process of rebuilding the culture, restructuring the offering, and the team, ensuring we have everyone in the correct position with a clear understanding of their role in driving this business into the future."
"There has been a palpable, positive shift in the energy at all levels of the business, with both the team and the customers responding positively to that shift."
Business News Australia
Author: Business News Australia