John Holland chairman exits after company logs $55.5m loss amid rumours over Waterfront Brisbane
The fortunes – or lack thereof – of one of Australia’s biggest builders are in the spotlight as it grapples with over-budget, overtime projects, a thunderous loss and the quiet exit of its chairman and director.
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The fortunes – or lack thereof – of one of Australia’s biggest builders have got tongues wagging in recent weeks, as it grapples with over-budget, overtime projects, a thunderous loss and the quiet resignation of its chairman.
It has also quietly appointed a new CEO. But is it also about to pull the pin on one of its major builds?
John Holland Group’s latest financial report, published in March for the 2024 calendar year, revealed a $55.5m loss from around $6.8bn revenue – that’s a $187m turnaround from a $132m profit in 2023.
Meanwhile, other lodgements with corporate regulator ASIC show chairman Biliang ‘Brian’ Wu has quietly resigned from the board altogether, while another director, Xiaodong Yu, has also left in recent weeks.
Mr Wu has been replaced by John Holland newcomer Junwu Zhang.
The departures follow an executive reshuffle which saw director and CEO Joe Barr leave in December after eight years, to be replaced by acting CEO Glenn Palin (pictured) who’s been in the gig ever since.
In response to Citybeat’s questions, the company surprisingly revealed Mr Palin’s tenure will expire in October, when Nick Miller will take over as CEO.
Mr Miller – a former CEO of Inland Rail Adbri, Broadspectrum, and Fulton Hogan – was appointed “last week”, it said.
In the meantime, Mr Palin’s many responsibilities while keeping the seat warm include the $850m construction of stage one of Dexus’ $2.5bn Waterfront Brisbane project, on the riverfront site formerly home to Eagle St Pier.
Citybeat has heard from multiple sources that this project – like JH’s major projects in Melbourne and on the Gold Coast – has hit financial trouble, to the point they were planning to pay Dexus nine figures to get out of it.
On this matter, John Holland was clear, saying “the suggestion we are looking to terminate the contract or reduce scope on Waterfront is not correct.”
“The John Holland team building the Waterfront development is working hard to deliver all of Stage 1, which includes a 250m new and improved Riverwalk, common basements and podium levels, a 54-storey northern tower, market hall, retail pavilions and significant new public spaces.
“Ground improvement works are well advanced and basement foundations under way.”
Speaking to the company, Citybeat got the distinct impression we were not the first journalists to pursue this line of questioning. Dexus was happy to let John Holland answer on behalf of both.
So, is this just a case of an overwrought Brisbane rumour mill? Time will tell.
In its favour, John Holland has a letter from Chinese parent, CCCC International Holding Limited, guaranteeing financial support for at least 12 months and has almost $21bn of work on its books.
It logged $3.1bn in assets as at December 31 and maintains it is a “strong and sustainable business”.
The group employs 5792 people directly, but the fortunes of many more rely on them via a web of subcontracting small and medium businesses and tradies working on projects nationwide.
That’s a lot of people hoping the rumours are just that.
Jewel sells for $2.6m
An apartment with a quirky sales history in one of the Gold Coast’s most recognisable towers has found new owner – who paid its highest price yet.
The developer of the striking Jewel Residences at Surfers Paradise, AW Jewel, first sold apartment 13003 to an Abu Dhabi Sultan for $2.67m.
It then bought it back for $1.9m in a transaction it tried to keep secret via a nondisclosure agreement, but was ultimately revealed in property records.
It sold again just three weeks later to a Hong Shang for $2.67m, who remained its registered owner until its most recent sale in May this year – for $2.958m.
We hope the new buyer, who does not appear to be related to the developer, will enjoy the 33rd-floor ocean views for many years to come.
Got any more business gossip? Email kathleen.skene@news.com.au
One of four teens accused of filming six-hour rape named
Four teens have been charged over the alleged six-hour sexual assault of a 17-year-old girl in Sydney’s west, with police alleging they filmed snippets of the ordeal and shared them with each other.
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