SurfStitch Names New CEO After Former Head Abruptly Quits, Expects To Lose $18.3 Million

SurfStitch Names New CEO After Former Head Abruptly Quits, Expects To Lose $18.3 Million
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Surfing brand SurfStitch has appointed Mike Sonad as group CEO three months after Justin Cameron suddenly left the company, and in a trading update said it expects to lose a few million after an amendment in revenue funds.

In a statement to the Australian Securities Exchange (ASX) SurfStitch chairman Howard McDonald said there was a change to a transaction recorded in the first half of the financial year in a content liscencing agreement. Due to the change revenues were expected to be $20.3 million less than expected.

“The impact of the above charge means the company now advises that pro-forma earnings before interest, tax, depreciation and amortisation for fiscal year 2016 is likely to be a loss, in the range of $17.3 million to $18.3 million,” the company said in a statement

However, SurfStitch said it expects to return to a positive cash flow come 2017.

New CEO and non-executive director

While SurfStitch now has a new CEO in experienced retailer Mike Sonad after the former one Justin Cameron it means the two joint CEOs – Lex Pederson and Justine Stone – are demoted down to director level.

The company was in need of a new CEO when Justin Cameron quit the company suddenly in March, breaking his contract. At the time there was no explanation for his departure.

Still, chairman McDonald said Sonad is already well underway.

“Mike has already had a very positive impact on the leadership team and has spent a considerable amount of time visiting all the businesses in the group,” said McDonald.

“He has already demonstrated a firm grasp of the company’s immediate priorities and growth initiatives.

“Justin and Lex, who are both very supportive of the appointment, will now focus on delivering outcomes in their new roles.”

Not content with just one new role, SurfStich has also appointed Sam Weiss as the company’s non executive director from the start of July.

“Sam is a highly experience public company director with a strong background in software and technology, online retailing and digital marketing,” said McDonald.

“He has an extensive track record of working across global markets as well as in mergers and acquisitions and corporate restructurings. We look forward to working with him.”

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