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.
