Citadel Group CEO Darren Stanley resigns after 'disappointing' year
- 13 November, 2019 10:15
Darren Stanley (Citadel Group)
The Citadel Group has announced its chief executive officer Darren Stanley has resigned after a year of tumbling earnings and profits.
The publicly listed software vendor has appointed co-founder Mark McConnell as Stanley's replacement, handing him the dual roles of CEO and managing director.
In a statement to shareholders, Stanley said it was an honour to lead Citadel for the last three years as its CEO, and prior to that as its deputy CEO.
“I am incredibly proud that we have built an Australian company that is keeping people and information safe,” he said.
“I would like to thank [former chairman] Kevin [McCann] and the board for their support over my tenure, and to my very capable and dedicated leadership team that have supported me over my journey. Citadel is well placed to continue on the next phase of its transformation, and I wish the board and the staff every success for the future.”
In its last annual report, Citadel's earnings before tax (EBITDA) declined by 31.7 per cent to $23.3 million and net profit (NPAT) declined by 43.8 per cent to $10.9 million, in what was described as a "disappointing" year.
The Canberra-based company had earlier issued a warning to shareholders of the impending decline due to project sign-offs getting delayed.
During his tenure, Stanley was also responsible for driving the company’s “Citadel 2.0” growth strategy, which was said to “drive diversification of the company’s client base and secure a higher percentage of software/SaaS based revenue over time".
McConnell is also the non-executive director of Viva Leisure and Adveritas, a non-executive investment advisor at HOF Capital and deputy chairman of Cricket ACT.
Citadel’s chairman Kevin McCann has also stepped down, having claimed it was time to pass on the role as the next stage of the '2.0 strategy' goes ahead.
Lieutenant General Peter Leahy, a non-executive director with the company since 2014, will take his place as the new chairman.
Leahy spoke on behalf of the board, thanking both McCann “for his significant contribution to Citadel” and Stanley “for his passion and commitment in leading” the company.
“We remain committed to the Citadel 2.0 strategy. We will continue to refresh the board with the appointment of additional directors with global technology and SaaS experience to support the Citadel 2.0 strategy and the company’s international expansion,” he said.
“The search is well advanced and we hope to update shareholders in the near future.” The changes to the CEO and chairman positions are effective as of 12 November.