Winkler steps aside as chief executive of MYOB
Friday, June 27, 2008/
MYOB founder Craig Winkler has stepped aside as chief executive of the accounting software provider company
MYOB founder Craig Winkler has stepped aside as chief executive of the accounting software provider company, as investor anger grows about the company’s decision to reject a $735 million private equity takeover deal in February.
The managing director of MYOB’s Australian business, Tim Reed, has been appointed to the top job. Winkler has shifted to the newly-created position of chief innovation executive. “Tim’s appointment will free me up to focus on innovation and turning new ideas into new business. It’s what MYOB was built on and it’s what I am most passionate about,” Winkler said in a statement.
MYOB announced in February that it received an indicative takeover offer from an unnamed private equity firm, believed to be Archer Capital. The offer was priced at $1.90, but MYOB’s shares have since fallen to $1.21.
Reed has affirmed MYOB’s earnings outlook for calendar 2008 of earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 11% to 14%. He said the company is on track to post revenue growth of 6% for the six months to 30 June, with EBITDA tipped to come in at $36 million (compared with $39 million in the first half of 2007).
But the company has highlighted the poor performance of its New Zealand and China operations, with revenue from its New Zealand business division expected to dip 7% in the first half.