John McGrath, the salesman who founded the ASX-listed real estate agency, McGrath, has finally revealed his new board of directors, which includes an accountant and a lawyer.
He has filled the void of a departing CEO and the resignation of two directors withe two non‐executive and independent directors, lawyer Andrew Robinson and former CFO Peter Lewis.
Cameron Judson, the CEO, had his final day last Friday. Chairman Cass O’Connor and current non-executive directors Elizabeth Crouch and Cath Rogers have also announced their intention to resign.
John McGrath says the two new directors bring a wealth of public company experience and expertise to the board.
“The new directors have high standing in the private and public sectors, with Peter a very experienced senior executive in the media industry and Andrew, a well‐respected lawyer with deep commercial experience,” says McGrath.
“The new leadership team brings a broad range of complementary skills to the group and I look forward to working closely with them to restore shareholder wealth and the McGrath business to strong growth.”
McGrath says he and the new board are developing a new corporate plan for the group, including the senior management structure.
He has previously said that a “new approach” was needed.
In early trade today, McGrath shares were down 1.1% to $0.425. The company floated in December 2015 at $2.10.
The agency last week posted a half year loss of $25.5 million after impairments of $22.9 million to goodwill. Revenue fell 23% to $51.6 million for the half year to December.
Peter Lewis is currently Chair of the Audit and Risk Committee at the Australian Broadcasting Corporation and an advisory board member of Anacacia Capital and Gravity Media Group. He previously worked as Chief Financial Officer for the Seven Group of companies.
Robinson established his legal practice in 1982 with specialisations in tax disputes, corporate re‐constructions and commercial negotiation.
McGrath’s personal finances have been the subject of media reports. The Sydney Morning Herald reported on an alleged $16.2 million gambling debt with betting company William Hill Australia run by Tom Waterhouse.
However, McGrath’s has called the media reports “ridiculous”.
“Like many Australians, I enjoy a punt,” he said. “The account is well within my means in the context of my net wealth. I am in full compliance with the terms of that account.”