Arq Group enterprise and SMB leaders depart
- 08 July, 2019 14:29
ASX-listed Arq Group has overhauled its executive leadership team, resulting the departures of enterprise managing director Peter Wright and SMB managing director Emma Hunt.
Wright spent eight years leading the enterprise division, joining in 2011 and growing it from 50 to 400 people.
“I am deeply appreciative of the significant contribution Peter has made to the strategy and growth of the enterprise division and the leadership he has displayed,” Arq Group CEO Martin Mercer, said.
Hunt meanwhile spent a little over two and a half years in her role and will be leaving to pursue another opportunity, according to an ASX update.
In response to the two departures, Arq has placed current CTO Brett Fenton in the newly created role of mass and middle market executive director. Fenton joined the company following its acquisition of Netregistry in 2014.
“These changes will bring greater focus and momentum to the implementation of our strategic plan and sharpen our execution. They provide a springboard for our return to growth,” Mercer said.
Last month, Arq Group, announced its intention to flatten the leadership team as part of its strategic business transformation strategy.
As a result, the company revised its underlying EBITDA from core operations down to a range of $15.5 million to $18.5 million. This is due to the performance of the enterprise business, execution issues experienced in the Melbourne market and unexpected delays in generating revenue from new contracts.
Mercer expressed disappointment and frustration in the forecast results, but was confident the changes it was making within its enterprise sector will help turn that around, claiming the SMB sector has started to see growth.
“This is a temporary challenge, and a recovery plan is already in effect," he said. "Last year, our SMB division fell short on earnings, but is now exceeding expectations as a result of cost improvements from productivity initiatives and growth in new solutions revenue. We’re confident enterprise will see a similar return to growth."