Cellnet managing director, Adam Davenport, has quit the distributor, effective immediately. He has been replaced at the helm by chief financial officer, Mark Bloomer.
Davenport was appointed managing director in July 2005 following the resignation of Cellnet co-founder, Steven Harrison. Prior to joining Cellnet, Davenport was the local boss of US-based systems integration and software development firm, Kanbay.
In an ASX statement, Cellnet executives said he would now look for opportunities in his home town of Sydney.
"With the Cellnet Board's recent announcement of its proposal to demerge the Mercury Mobility business from Cellnet, Mr Davenport has decided to return to Sydney to explore other options there," the statement read.
Davenport's decision to resign comes after a tumultuous two years for the distributor, including a restructure of its operations and management team. During that time, it has also experienced slow revenue returns.
In its most recent, first-half-year financial report, Cellnet recorded a 15 per cent drop in revenue from $319 million to $269 million. Net profits over the same period were also stagnant. The company chalked up $2.9 million including a $2 million windfall from the sale of property in New Zealand. This compared to $0.7 million in net profit recorded in the same period a year earlier.
Cellnet's share price has also taken a hit in recent months, falling from a high of $1.49 on January 29 to a low of $1.07 earlier this month. However, the share price steadied to between $1.20 and $1.24 following the announcement of plans to demerge Mercury Mobility on April 30.
Bloomer has been Cellnet's CFO for two years. Prior to that, he was financial controller at Ingram Micro pre and post-merger. He told ARN he had worked closely with the Board on all aspects of Cellnet's current strategy. The most important focus now was to get Cellnet's finances in order, Bloomer said.
"The strategy has been in place for a while and that is what we'll be following, we just have to execute on that a lot better," he said. "The return on investment has been well below shareholder expectations. We will be looking to grow the business and manage our capital to become more efficient."
Cellnet had not yet decided on who would fill the CFO's chair, Bloomer said.
"I won't be looking to make a lot of changes - there will be a few across the management team, but we have not decided on these yet," he said.