Geoff Ninnes Fong & Partners (GNFP) is a structural, aquatic and civil engineering consultancy with broad experience in the design of new municipal and institutional swimming pools, hydrotherapy…read more
Share volatility after Ardent Leisure announces new Chief Executive
Shares in industry-wide leisure group Ardent Leisure dropped sharply yesterday (11th March) after the surprise announcement of the appointment of former magazine editor Deborah Thomas as the group's new Chief Executive.
Ardent announced on Tuesday that Thomas would replace Greg Shaw in July, when Shaw's 13-year period at the group comes to an end.
Ardent Leisure's stock slumped dramatically in early trade on Wednesday but had recovered to close down 46.5¢ (19.14%) at $1.965 with 28.6 million securities having changed hands.
The slide prompted the group to issued a statement acknowledging the steep fall and confirming that a conference call was held between company executives, investors and analysts before the market opened on Wednesday.
The statement explained "no additional information was disclosed to conference call participants beyond that which was set out in the ASX release Retirement of Chief Executive Officer issued to the Company Announcements Office on 10 March."
Morgans analysts Josephine Little and Fiona Buchanan said the unexpected retirement of the highly respected Shaw as a “major surprise”.
In a note to investors the pair wrote "while Greg’s replacement comes with an impressive bio and a wealth of experience in adjacent fields, a lack of operational leisure experience leaves us cautious.
“This, in addtition to a questionable new health club strategy and an elevated PE (price to earnings ratio), sees us downgrade (our recommendation on the stock) to Reduce.”
Thomas, the former editor of Cleo and The Australian Women’s Weekly, joined the board of Ardent in 2013.
Greg Shaw (left) is leaving Ardent Leisure after 13 years, being replaced as Chief Executive by Deborah Thomas (right).
Ardent’s assets include Dreamworld and WhiteWater World theme parks on the Gold Coast, Goodlife Health Clubs, AMF and Kingpin Bowling centres and its high performing Main Event FEC division.
In a statement on her appointment to her new role, Thomas thanked Shaw for his hard work in growing the company.
Thomas stated “Greg has built a great platform of assets and management team on which I will build, with a strong focus on marketing, customer service and product innovation across all of our facilities."
Shaw joined the then Macquarie Leisure Trust Group in 2002, which later evolved into Ardent Leisure.
Ardent Chairman Neil Balnaves said over the past 15 months Thomas has developed a thorough understanding of the Ardent’s diverse portfolio of businesses.
Balnaves stated "the group’s future will be increasingly focused on positioning our businesses to deliver world class customer entertainment and leisure experiences, to maximise organic revenue and profit growth opportunities."
19th February 2015 - ARDENT LEISURE SUFFERS PROFIT DIP
18th February 2015 - GOODLIFE BOLSTERS FULL-SERVICE OFFERING WITH 24/7 ANNOUNCEMENT
29th October 2014 - ARDENT LEISURE EARNINGS AGAIN BOOSTED BY FITNESS AND US EARNINGS
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
Yellowbox is an Australian technology company that has developed smart locker technology operated through an app with a focus on experience for users and facility managers. Found at Beaches, Aquatic…read more
METRA Australia is your innovation partner for smart electronic locking, Access Control solutions and cashless payment systems to suit all types of leisure facilities. Our team’s…read more
The Jump Pad is a safe, flat inflatable made in a variety of sizes which can be used indoor or outdoor. From 3mx3m up to a whopping 9mx21m. Markets include Indoor and outdoor playgrounds, schools,…read more
Otium Planning Group is a contemporary sport and leisure consultancy providing services in planning, facility development, management and funding for the sport, recreation and leisure industries…read more
SLE Worldwide Australia is a Managing General Underwriter specialising in insuring risks in the world of Sports, Leisure and Entertainment. Be it relaxing, playing, organising or watching sports,…read more
APT (Advanced Polymer Technology) is the leading global manufacturer of polyurethane-based materials, acrylic coatings and synthetic turf products for sporting and recreational applications. From…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!