Executives quit as Wilson Neill sinks further

By Nick Smith and Nick Stride

Friday 1st March 2002

Key executives are fleeing the struggling Wilson Neill in the wake of the company's disastrous $24 million loss.

Media chief Tim Connell has gone and chief executive Phil Vosper is pursuing business opportunities in Australia as the failed company nears the end.

Mr Connell this week quit his job as a director of subsidiary IT Media, citing unhappiness with the management of the sharemarket delinquent, while Mr Vosper has approached Vending Technologies (VTL) to acquire rights to operate in Australia.

However, Mr Vosper has been rejected by VTL. Spokesman John Hotchin said the company "categorically" had no relationship with Mr Vosper.

He did confirm that Mr Vosper approached the company about buying one of its licences to operate vending units in one of its Australian territories.

Mr Vosper said he was not prepared to make any comment about Wilson Neill.

"It's inappropriate at the moment, we're working through things at the moment, and when they come to fruition, we'll notify the press accordingly."

When asked about persistent rumours he would soon leave for Australia, Mr Vosper said he would not discuss scuttlebutt spread by "misguided people with hidden agendas. I talked to Vending Technologies but I talk to lots of people in the course of my business."

Mr Connell said: "I have been unhappy with the direction and management of Wilson Neill for some time and ongoing cashflow problems have made my position untenable."

Meanwhile, the Companies Office is continuing its investigation of Wilson Neill over the late filing of its annual accounts. The accounts, to nobody's surprise, show the company is insolvent. Its 8200 shareholders are awaiting a rescue plan Stuart Cairns, boss of sharebroker DF Mainland, is attempting to pull together.

The accounts, filed on February 9 but relating to the 15 months to last June, were tagged by auditor Polson Higgs on the basis that the "going concern" assumption on which they were based was dependent on the board's fund raising, asset sales and restructuring efforts.

In a post-balance date commentary the company claimed the Cobb & Co restaurant chain, up for sale, was profitable despite "a period of downturn in the market," although industry sources doubt this. The Iguacu restaurant business was also profitable and for sale.

Wireless communications unit Radionet lost $3.5 million during the period and was on hold "pending the receipt of further moneys in order to take the operation to a higher level of activity."

The company's fourth business, IT Media, is forecast to lose $3.2 million to March this year. Wilson Neill's directors said it was expected to show a profit in the December year.

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