Construction and engineering company Paladio Group has unveiled major changes with managing director Victor Kuss to step down and a name change to Decmil Group.
Construction and engineering company Paladio Group has unveiled major changes with managing director Victor Kuss to step down and a name change to Decmil Group.
The changes comes as the company steps back from national expansion plans to better focus on the mining, oil and gas and infrastructure sectors in Western Australia.
Paladio today said Mr Kuss' resignation from the board is through mutual agreement, with the managing director to sign off on July 1 2009.
Current chief operating officer Scott Criddle will be promoted to chief executive on the same date.
The board changes come nearly one month after Multiplex director Geoff Allen and BOOM Logistics founder Bill Healy joined the board.
Additionally, Paladio will take on the name of its most important subsidiary, Decmil Australia.
During 2008, Decmil has provided almost 90 per cent of Paladio's revenue, with the company's construction arm - which includes Decmil - generating $118 million in revenue for the half-year to the end of December 2008.
This compares to Paladio's engineering division which generated $6 million in revenue.
Paladio said it expects Decmil's revenue contribution in the current financial year to be higher.
The name change is subject to a shareholder vote, scheduled for June 16.
Paladio's changes follow movements at other mining service providers and resource stocks with VDM Group managing director John Farrell departing suddenly last month.
Last month, WildHorse Energy chairman Mark Hughes resigned while earlier this year, Nomad Building Solutions farewelled managing director Phil Guy, who has since taken a position at Paladio.
The announcement is below:
Perth-based construction and engineering company Paladio Group Limited (Paladio) (ASX:PDO) today announced executive management changes and a proposed company name change in line with the Board's recently announced decision to focus activities on the mining, oil and gas and infrastructure sectors in Western Australia.
The Board announced that Brisbane-based Paladio Managing Director Mr Victor Kuss will leave the company on 1 July 2009 following the termination of his contract by mutual agreement. Mr Kuss will also step down as Executive Director of the company on this date.
Mr Scott Criddle, currently Paladio Chief Operating Officer, has been appointed to the role of Chief Executive Officer effective 1 July 2009. Mr Criddle joined wholly-owned subsidiary Decmil Australia in 1993 and was that company's Managing Director from 2002.
Mr Kuss and Mr Criddle will work together until the changes come into effect to ensure a smooth transition in management responsibilities is achieved.
In line with the company's increased WA focus, the Board has also proposed the company's name be changed to Decmil Group Limited to leverage value from Decmil Australia's 30-year history, established reputation with blue chip clients and recognisable brand.
In 2008, Decmil Australia contributed almost 90 per cent of the group's revenue and, based on its existing contracts with clients, it is expected that its revenue contribution to the group will be higher in the 2009 financial year.
Shareholders will vote on the proposed name change at a general meeting scheduled to be held in Perth on 16 June 2009.
