Founding CEO of M2 Telecommunications Group (ASX:MTU) Vaughan Bowen, will step down from his role after 12 years and become an executive director.
In this capacity, Bowen will assume responsibility for merger and acquisition opportunities, maintaining and developing key stakeholder relationships, and will advise his successor, Geoff Horth, who was previously the company’s COO.
“M2 has grown from a fledging start-up to a large, highly profitable and respected member of the Australian telecommunications industry, employing nearly 500 people across A/NZ.
"Since listing on the ASX almost seven years ago, Vaughan has steered M2 from a capitalisation of $14 million to more than $360 million as of last market close,” M2 Chairman, Craig Farrow, said.
The resignation comes on the back of the company’s record financial performance for FY11.
Net profit after tax reached $27.6 million, up 72 per cent on the previous year, and EBITDA was up 54 per cent to $48.3 million. Revenue was also up 5 per cent to $426.8 million
It also revealed earnings guidance for FY12, which is expecting to reach between $58 million and $62 million. Net profit is expected to top between $30 million and $32 million.
“The guidance we have issued today for FY12 highlights a continued improvement in operating margins, while also being a year in which we will be investing significantly in new growth and delivering further business-wide efficiencies, to ensure we are fit and ready to take on the challenges of the rapidly evolving telecoms landscape,” Bowen, said.
“The improvement in our customer experience ratings, further investment in expanding our sales channels and the pending implementation of our new company-wide business support system, collectively position M2 exceptionally well to make deeper inroads into its core target markets in the FY12 year and beyond.”