Early signs of turnaround at technology company Grintek
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Industrial Correspondent
CHANGE is afoot at technology group Grintek.
Apart from looking for a new finance director, the company has also said it is looking for a CEO to head its newly developed technology division, created through the merger of its industrial technology and communications divisions.
These changes are part of Grintek CEO Shaun Liebenberg`s plans to turn the group around.
Group revenue fell 10% to R615,7m and attributable profit dropped 60% to R17,2m for the half year to December.
Liebenberg, who has been in the job only three months, has not been shy about making changes.
Under Liebenberg, Grintek is now implementing a 15-month turnaround plan to improve its operating efficiency.
But this is only the start of the changes being introduced by the new CEO, who was head-hunted from IT group Dimension Data to replace Sybrand Grobbelaar, who held the job for 27 years.
While its operational improvement plan was under way, Liebenberg said Grintek was now only beginning to look at what `strategic direction` it wanted to take.
Grintek is currently a mishmash of defence, telecom`s and IT businesses, and whether it stays like this is something that Liebenberg and his team will have to decide on.
Apart from a new structure, the group is also introducing new blood into management. Liebenberg said earlier this week he had already compiled a short list of candidates for the vacant executive positions.
Asked if the early retirement of the group`s former financial director, Ewald Strauss, was part of a management shake-up Liebenberg said his departure was an `amicable arrangement`.
Liebenberg said the management change s at Grintek had nothing to do with the change s to the group`s board made by minority shareholder, Saab.
The Swedish technology company which has a 21% holding in Grintek appointed Per Erlandsson as its nominee to the Grintek`s board.
Erlandsson replaces Kjell Moller with effect from June 22.
Saab wants an office in SA to help it co-ordinate its activities here. Apart from its shareholding, Saab has several joint ventures with Grintek.
In spite of its problems, Grintek holds two key advantages which could aid its future growth.
Grintek`s connections with Saab have already helped it into new international markets, and the 32% Kunene Brothers shareholding in the company gives it empowerment credentials .
It is now up to the people running Grintek to put the group in a position to make the most of these factors. While its still early days, there are signs Grintek is turning around, industry commentators have said.
Liebenberg said Grintek`s second half results were expected to show an improvement on the first half.
Jul 14 2004 07:20:04:000AM Larry Claasen Business Day 1st Edition
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