New MD at Hartleys as total writedowns rise
Hartleys Limitedwill unveil a writedown of at least $21 million for the financial year ending today due to costs associated with the restructure of the group, and has appointed formerBTproduct innovation director Peter Horne as managing director to lead its remaining JDV business.
The writedowns will constitute more than $10 million for the second half year with $11 million already wiped off the value of the business for the half year to 31 December 2002.
The results follow a decision by the Hartleys board earlier this year to sell its loss-making wealth management business and instead focus solely on JDV.
Hartleys closed its wealth management operations in the eastern states in early June, with Macquarie Financial Services employing the majority of Hartley’s advisers and some support staff.
A final agreement has also been reached with a management buyout team consisting of Hartleys Perth-based staff concerning the Perth Wealth Management business, and while this team is still to obtain an Australian Financial Services Licence (AFSL), Hartleys chairman Peter Mansell expects the transaction to be complete in August.
As a result of redundancy costs and writedowns on surplus space and equipment associated with the withdrawal from the Wealth Management business, Hartleys has adjusted the predicted total writedown upwards to at least $21 million, a further $10 million over the amount provided at 31 December 2002.
While Mansell says the complete picture of Hartley’s financial position will not be clear until the June 30 2003 financial statements are released, Hartleys remains confident of an anticipated cash balance of $18 million at the end of the first quarter of the 2004 financial year.
Horne, who has spent eight years with BT in various senior executive positions, will begin his three year contract at Hartleys on July 2.
According to Mansell, Horne was chosen for the critical role due to his “understanding of the business, the industry, his enthusiasm and energy and just a general belief that he can take the next step forward with the business”.
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