Predictions confirmed as B&B CEO steps down
As widely predicted throughout the week, specialised fund and asset management group Babcock & Brown has reported a 30 per cent downturn in profits and the departure of its chief executive, Phil Green.
The group announced to the Australian Securities Exchange that Green would be stepping down from his executive director role and succeeded by current chief financial officer, Michael Larkin.
Green will remain on the board as a non-executive director.
Both the result and Green’s departure had been widely predicted through the week, but the 30 per cent downturn in group profits to $175 million represented a confirmation of the depth of the problems confronting the group.
The attitude of the board appeared to be clearly reflected in the formal statement issued by new chief executive, Larkin, who said that over the last few years in particular, Babcock & Brown had been very successful at achieving substantial growth based on the high levels of liquidity in the capital markets.
He said this had led to the group being too highly leveraged and not sufficiently focused.
As part of the boarder strategy announced by Larkin, Babcock & Brown has initiated changes to the senior management team, including the creation of a chief investment officer role and a range of other changes.
AUTHOR
Mike Taylor
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
