Self-made billionaire Kerry Stokes is retiring from the board of ASX-listed Seven Group Holdings, but the 80 year old will retain a well-paid consultancy role.
Self-made billionaire Kerry Stokes is retiring from the board of ASX-listed Seven Group Holdings, but the 80 year old will retain a well-paid consultancy role.
The Stokes family will maintain a strong influence at Seven Group, where Mr Stokes has been executive chairman since the company was established in 2010.
He will continue at the industrial and media conglomerate as a strategic adviser, with annual fees of $475,000.
Curiously, that represents a pay rise compared to the $387,000 he was paid last financial year as executive chairman.
In addition, his son Ryan Stokes will continue as managing director.
The Stokes family company, Australian Capital Equity, is Seven Group’s major shareholder.
Mr Stokes also controls Seven West Media, which owns the Seven television network and The West Australian newspaper.
He will continue as Seven West’s non-executive chairman.
Mr Stokes said he was very confident in Seven Group’s future, under incoming chairman Terry Davis.
“In reflecting on what SGH has achieved in terms of building stronger businesses and delivering shareholder returns, I am confident that I leave SGH in the best possible hands under the stewardship of Terry and the board and the leadership of Ryan,” he said.
“Of course, I remain very committed to SGH and I will remain involved in the business in an advisory capacity.
“As a shareholder, I look forward to the company’s continued growth and prosperity.”
Mr Davis has been a director of Seven Group since June 2010.
“I’m delighted to continue working with my fellow directors and the team at SGH to continue delivering strong, long term shareholder returns,” Mr Davis said.
“On behalf of all at SGH, I would like to thank Kerry for his mentorship, which has built many strong businesses and strong leaders.”
His former executive roles include group managing director of Coca-Cola Amatil, wine company Beringer Blass and Cellarmaster Wines Group.
Meanwhile, Seven Group has revealed sold growth in underlying earnings for the year to June 2021.
The group’s underlying EBIT was $792.1 million, up 7 per cent.
That was built on a 6 per cent lift in annual revenue to $4.8 billion.
The largest contributor was its WesTrac Caterpillar dealership, which delivered an 8 per cent lift in EBIT to $400 million.
Coates Hire posted a small lift in EBIT to $211 million.
The group added another very substantial leg to its business this year, when it acquired a 70 per cent shareholding in building materials company Boral.
“The addition of Boral to SGH creates an industrial portfolio second to none in Australia,” Ryan Stokes said.
“The group’s operating businesses and investments are well-placed to capture the available opportunities in their respective markets.
“Mining production and infrastructure and construction activity are strong and expected to underpin further growth for SGH’s industrial businesses in FY22, which will be expanded by the inclusion of Boral as a subsidiary.”
He said confidence in the outlook allowed the group to increase dividends by 10 per cent, providing a total fully franked dividend of 46 cents per share for the year.
Today's package of news was not greeted well by the market, with Seven Group shares down 7.5 per cent to $21.15 at close of trade.
