Evolve CEO Alan Wham quits after profit warning

Friday 25th August 2017

The chief executive of Evolve Education, the early childhood education centre operator which last week warned annual profit will fall as much as 12 percent in the current year, has resigned and will leave in September.

Alan Wham, who has been in the role since September 2014, "has led Evolve through the initial public offering and the establishment of 126 early childhood education centres and two home-based operations," the company said. "Evolve thanks Alan for his service and wishes him well in his future endeavours."

Mark Finlay, a former director who stepped down from the board earlier this month, will act as interim CEO, with recruitment for the position beginning immediately, Evolve said. Finlay was founder and managing director of the Lollipops Educare Group, and when he retired from the board Evolve said it was "in discussions on how to continue to have access to Mark’s significant sector expertise."

Last week, the Auckland-based company said it expects net profit of between $14 million and $15 million in the year ending March 31, 2018, down from $15.9 million a year earlier. Evolve forecasts first half profit of $7 million, down 14 percent from a year earlier, due to lower occupancy rates than a year earlier, and excluding the impact of more public holidays falling on revenue generating days and early trading losses from its development programme.

Chair Alistair Ryan said last week that the result was disappointing "and it is fair to say we have been slow to react, but also fair to say that we are now in full response mode and are confident we can turn this around in the second half."

Evolve has been expanding its ECE centre portfolio and now has 126 across the nation, up from just 65 when the company listed in late 2015, raising $132.3 million at $1 a share.

The stock has plunged 25 percent since the profit warning, last trading at 75 cents.

(BusinessDesk)

Comments from our readers

No comments yet