Former Smiles Inclusive CEO Mike Timoney pitches new board for troubled Gold Coast dental group

Ousted Smiles Inclusive CEO Mike Timoney has unveiled his alternative board as he battles for control of the beleaguered Gold Coast dental group.

OUSTED Smiles Inclusive CEO Mike Timoney has unveiled his alternative board including the ex-boss of Officeworks as he battles for control of the beleaguered Gold Coast dental group.

Mr Timoney, who owns 17 per cent of Smiles stock, together with ex-chairman David Herlihy have called a meeting on May 22 to remove new chairman David Usasz and executive director Tracey Penn.

They say they have “grave concerns regarding ongoing corporate governance issues” and have put forward the names of four new directors to “strengthen the board”.

As well as the previously announced paediatric dental specialist Dr John Camacho, they have also put forward Mark Ward, Hugh Amoyal and Vincent Fayad for election.

Mike Timoney claims to have “grave concerns regarding ongoing corporate governance issues” at Smiles. Picture: Annette Dew

Mr Ward was managing director of Officeworks from 2007 until stepping down earlier this year while Mr Amoyal led research agency Ipsos Australia between 2008 and 2013.

Mr Fayad led the corporate finance group at PKF (now part of accountant consultancy BDO) before launching his own advisory firm.

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Mr Timoney said the group has the ability to emulate the success of dental groups worldwide, including in North America.

“We are fortunate to have secured the skills of high-calibre executives who are leaders

in their respective fields — retail, consumer, dental and finance,” he said.

“We have designed a board that better reflects the needs of the business, our dentists, patients, our aspirations and Smiles Inclusive shareholders.”

Mike Timoney has recruited former Officeworks managing director Mark Ward as a candidate for the Smiles board.

He said in Mr Ward they have secured the support of one of “Australia’s top retailers”.

Last month Mr Timoney said “renegade directors” led by Mr Usasz made threats, through his advisers, to sack him and remove him as a director if he proceeded with his motion at the upcoming meeting.

He claimed it was an “abuse of power” designed to prevent the exercise of shareholder rights.

However, Mr Usasz denied any threats were made against Mr Timoney.

He said he had merely advised Mr Timoney and his adviser they were investigating him over a number of unspecified issues.

Smiles previously said the company’s performance under Mr Timoney and Mr Herlihy was “far below expectations”.

Mr Timoney was asked to stand aside from the CEO role earlier this year in favour of Tony McCormack after presiding over a poor first-half result, which saw the company report an after-tax loss of $1.59 million.

Guidance of FY19 was revised from a net profit of $2.3 million to a loss of between $500,000 and $1 million.

Smiles Inclusive listed last year under the leadership of Mr Timoney after acquiring a portfolio of 52 practices under a partnership model with individual dentists who sold their clinics but remained investors in the business.

The share price for the company, which listed at $1 a share in April last year and was previously valued at close to $60 million, was steady in intraday trading at 19c.