Oliver’s Real Food founder has been shown the door – but remains the biggest shareholder
Food & Agriculture
Food & Agriculture
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Fewer than two months after he was replaced as the boss Oliver’s Real Food founder Jason Gunn has been shown the door — ending his involvement with one of the more disastrous ASX floats in recent years.
Oliver’s (ASX:OLI) went public last year, raising $15 million selling shares to investors at 20c a pop. The shares were trading this morning at 13.5c — up 0.5c.
Investors reacted sharply to an earnings downgrade in May – just two months after its earnings forecast had been reaffirmed – by dumping the shares to an end-of-day low of 11c, which was well below the post-IPO high of 39c a year ago.
Oliver’s blamed the downgrade on poor trading at new outlets, coupled with delays in opening the door at some new stores.
And while EBITDA earnings is now seen at $3 million to $3.3 million for the year to June, a large chunk of this — $1.8 million — is from profits on the sale of property.
It had earlier forecast EBITDA of $4.7 million.
The move to replace Gunn as the chief executive was disclosed ahead of the company reaffirming its profit outlook.
When Gunn was replaced, the company went to great lengths to point out he would be hanging around.
“Jason will remain closely involved as a director, supporting the transition process and identifying new locations for the next generation of Oliver’s stores,” the chairman, Mark Richardson said.
“We look forward to Jason’s continuing involvement with the company he founded and is so passionate about.”
The new CEO, Greg Madigan, had worked previously with sandwich maker Subway both abroad and in Australia.
Since he joined the company, Madigan has undertaken a review of operations while seeking to improve aspects of the supply chain as well as the menu and prices.
This morning Oliver’s confirmed in an ASX statement that Gunn “has agreed that he will step aside from all involvement in the day to day operations of Oliver’s”.
“Mr Gunn’s employment with the company has ceased,” it said, while confirming he was no longer a director of the company.
Gunn remains the largest shareholder in Oliver’s, with a 21.4 per cent holding.