Vacuum cleaner retailer Godfrey’s Group says board member Brendan Fleiter will take over as chairman and Jason Gowie will be its new chief executive, adding that full-year earnings will be lower than forecast.
Gowie replaces managing director John Hardy – the star of its 1990s TV commercials, who stepped in as CEO after his predecessor left prematurely – while board member Brendan Fleiter replaces Rod Walker.
Meanwhile, the company has cut its forecast 2017/18 earnings by $3.5 million – $4.0 million, due to reduced conversions of company to franchise stores, and says like-for-like store sales were weaker than expected in October and November.
Fleiter has been a member of the board since November 2014 and chairman of the company’s audit & risk management committee and a member of the remuneration & nomination committee.
Hardy, will remain with the business on a part-time basis, and will assist with product innovation while remaining on the board.
Kathy Gramp joins Godfreys as a non-executive director commencing in 2018. Gramp is currently a non-executive board/committee member with the Australian Institute of Company Directors, Codan Limited (CDA.AX), Flinders University, Bushfire & Natural Hazard Cooperative Research Centre, Royal Automobile Association SA and Silver Chain RDNS Group.
Gramp will chair the Audit & Risk Management Committee following the appointment of Fleiter as Chairman.
Penny Burke joins Godfreys as a non-executive director also commencing in the new year.
Burke has had over 30 years of experiene as an executive career in strategy, brand and marketing and currently a non-executive director of Kennards Hire Pty Ltd, Hocking Stuart and Karrikins Group.
In August 2017 the Company said the FY18 contribution from initial franchise fees would reduce due to fewer, and lower value, conversions of company to franchise stores.
“The conversion program will now be slowed further than initially expected as the company continues its focus on improving its core business to maximise the sale value of future franchise conversions,” the retailer said in a statement.
Only two or three store conversions are now expected in FY18 contributing between $0.5 – $1.0 million of EBITDA, compared with the company’s initial expectations of over 15 store conversions with an EBITDA contribution of approximately $4.5 million.
This compares with 22 store conversions in FY17 with an EBITDA contribution of $5.7 million, including $5.3 million from initial franchise fees.
As a result of this change, FY18 EBITDA is expected to be $3.5 – $4.0 million lower for the company.
“The company will wait for the results from the important Christmas and New Year trading period before re-setting the outlook for underlying FY18 EBITDA, with the half- year results in February 2018.”
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