Listed olive oil producer, Olea Australis Ltd, has gone back to the future, with the appointment of former chairman Ken Richards as chief executive officer.
His appointment continues the boardroom upheaval that has characterised the loss-making company for the past three years.
Mr Richards was appointed acting chairman in 2004, when Olea founder and executive chairman John Simpson left the company.
Trevor Clohessy, who has served on several boards with Mr Richards, including Ausron Ltd and Global Wine Ventures Ltd, was appointed Olea’s chairman five months later and continues in that role.
In the meantime, three chief executives have resigned from the company, most recently Tony Sparks.
Olea originally targeted the premium end of the olive oil market and invested heavily in its award winning Dandaragan Estate brand.
Its current focus is on being a low-cost producer in the bulk extra virgin olive oil market while also proceeding cautiously with the development of its brand in the retail and food services markets.
The company raised $2.6 million through an underwritten rights issue earlier this year to support its continuing operations.
The proceeds will support the working capital requirements for the upcoming 2007 harvest, which Olea said would be more than double last year’s harvest.
A second listed olive oil producer, Frankland River Olive Company Ltd, is also planning for an increased harvest this year, which it expects to be the biggest on record.
The group has extensive olive groves in the Frankland region, near Albany, and the Moore River region, north of Perth, following its acquisition of the Larenta Olives business.
Olea and Frankland have both completed a major restructuring of their business, by buying-back the interests of investors in their managed investment schemes to create a fully integrated structure.
