The company owned by former Essendon boss David Evans has axed 100 workers as the company downsizes. The announcement follows the unveiling of its annual report, which makes for unpleasant reading.
Ellen Whinnett and Michael Warner , Herald Sun
The financial advice firm owned by former Essendon Football Club boss David Evans has laid off 100 staff in Australia as it unveiled an annual report awash with red ink.
Evans Dixon Limited reported its results for the financial year, with net revenue down 5 per cent to $212 million. The company’s earnings before tax and other expenses fell 26 per cent to $37.1 million, while the share dividend of eight cents was down 27 per cent on the previous year.
The company’s share price was trading at 87 cents on Monday, up from a low of 62 cents in August but dramatically down from the $2.50 price at which launched on the ASX in May last year.
Evans Dixon, the company owned by Alan Dixon (L) and David Evans, has made 100 redundancies as it reports a decline in net revenue.
Company CEO Peter Anderson said the company had reduced its staffing levels by 100 since April, and was downsizing its office space as he enforced new financial discipline on the firm, formed by a merger between financial advisory companies Evans & Partners and Dixon Advisory in 2017.
Mr Anderson, who was brought in to streamline the ailing company in April, said he believed Evans Dixon was well placed to improve its performance in coming years.
“We have closed non-core operations including Dixon Projects in Australia, scaled back operations in the US as the URF renovations pipeline runs off, ensured there is no duplication of support services as well as refined our non-customer facing services,’’ he said.
“These actions along with a number of other measures have allowed us to make significant expense reductions.’’
The URF is the publicly-listed, wholly-owned subsidiary of Evans Dixon which renovates and leases real estate in New Jersey and New York, but which has been performing badly for more than a year.
David Evans expressed his disappointment to shareholders, but ensures that changes are being made to reverse the decline.
Mr Evans told shareholders he was “acutely aware’’ the result had not been good enough and the outcome was disappointing.
FROM OUR PARTNERS
Enjoy a summer of sport with great deals on Foxtel Sports HD Bundle Get Foxtel
But he said the changes made to the business this year had made the company stronger.
“The share price performance of Evans Dixon over the period is of great disappointment to the Board and the management and all of us at Evans Dixon,’’ he said
HOME VALUES COULD REACH RECORD HIGH BY JANUARY
GEORGE PELL TO LEARN HIS FATE THIS WEEK
DEVELOPERS’ BID TO AVOID FLOGGING DEAD HORSE
Mr Evans said several factors had contributed to the “underperformance’’ including the poor returns on the URF and the Government’s royal commission into financial services.
“I am acutely aware that the year we have delivered is not good enough,’’ he said.
The man Mr Evans launched the business with, US-based Alan Dixon, was re-elected to the company board as non-executive director.
The Canberra-raised Mr Dixon, who is the company’s largest shareholder and was its CEO, resigned all executive positions with the company last month. He is closely associated with the URF businesses in the US, into which hundreds of Evans Dixon clients in Australia were encouraged to invest.