Advantage chief moves as profits fall

Friday 2nd March 2001

KEEPING SHARES: Greg Cross

By Nicholas Bryant

Advantage Group yesterday announced chief executive Greg Cross was to step aside from his role as chief executive - but he will hang on to his shares.

Mr Cross is to remain in his role until a group managing director has been appointed as part of a restructure which will see the company's four divisions turned into standalone operations with their own chief executives.

"I'm very proud of our achievements and I'm committed to staying on, managing the transition period and remaining on the board ... I think that's a very solid statement of my commitment to the organisation," Mr Cross said.

He denied rumours circulating inside Advantage Group that he was looking to sell down his holding of Advantage stock: "I haven't sold any shares and don't intend to."

Advantage chairman Evan Christian also denied reports the company's 18% shareholder Eric Watson had attempted to sell some of his holding last November.

"Eric assured me just last week that he did not try to sell and doesn't intend to, not at these prices," Mr Christian said.

At midday yesterday Advantage was trading at $1.40, down 5c on the previous day's close.

Advantage has been finding it tough since last year's stock market tech wreck and announced yesterday net profit for the six months to December was $386,000 down from $2.1 million in the previous corresponding period.

There was a decline in its e-services division but the other three divisions - retail automation, payment solutions and portable technology - performed very well, Mr Christian said.

He said the restructure would be positive for the business.

"This will strengthen the management structure and transfer greater ownership to the teams within each of the businesses," Mr Christian said.

Also announced yesterday was the appointment of former Countrywide Bank managing director David Wolfenden to the board.

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