At SCA: One’s Term is up, the Replacement & Results
In just 20 days, CEO Rhys Holleran will present Southern Cross Media’s half year results for the period ending December 31.
It will give a glimpse into how the group is performing since the news flagged to the market in October, forecasting results would again be down by 18% for the first half.
This follows last years net loss of $296 mil, a 408% decline due to significant write-downs.Its Net Profit after Tax excluding significant items for 2014 was $79.9m.
On Feb 25, Max Moore Wilton who has held the chair of the Southern Cross Media Board for the last 8 years is to be replaced by a non exec Chairman.
The hunt for a new Southern Cross Media Chairman started last year when Max announced he was planning to exit in the New Year. Deputy Chairman Leon Pasternak heads up the SCM Nomination and Remuneration Committee, charged with the task of securing candidates.
The Australian today reports that that committee: “has decided to bring in an outside non-executive chairman. The decision to hire from outside the existing board of directors indicates the embattled radio and TV company is seeking fresh ideas.”
They quote another source close to the recruitment process saying: “We needed someone with a different perspective at the board table.”
The group has made inroads in firming up its brands and talent base in key dayparts and markets, with Hamish & Andy signing on for drive, the 'Hit" rollout and a new breakfast team for the flagship of 2Day Sydney with Dan & Maz.
But is it enough?
The Australian quotes Citi media analyst Justin Diddams who recently downgraded the company’s stock to neutral.
“While we remain excited about the planned talent investment, we also acknowledge the operational backdrop is mixed with execution risk increasing due to competition and balance sheet constraints ever present,” said Justin Diddams.
There has been persistent speculation in financial markets that the company is at risk of breaching covenants on its $646.6m debt which would be a big concern for the company
Who the new Chairman will be and how the group is performing will be revealed on February 25 at SCA's HQ in Goulburn street.
You can also read more in The Australian here.