Time for Board to rethink the management team and their performance.
Madison is a sub-scale advice business and the oft threatened recruitment and growth (remember the commentary on having a significant recruitment pipeline in previous updates) hasnt eventuated. The CEO was imported from Madison and touted having a licensee as important to grow Clime FUA and profitability - so what happened?
The purchase of a small advice practice made no sense. Was this done so management where seen to be doing something - where is this in the strategy? Come to think of it - what is the strategy? How does Clime compete in the market they operate?
Operating profit down 95%. Dividends frozen to preserve capital for acquisitions - give the dividends to shareholders as management havent done a good job of spending it.
There has been lots of noise about "transformation and change" but this has worn thin as time moves on - we are now seeing a bloated cost base, poor shareholder outcomes and a significant headwind on profitability and no real competitive advantage in a very competitive market.
Enough management speak, show me the outcomes being generated by this team for the significantly increased salary base.
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