Cardno posts $176m loss, CEO Richard Wankmuller quits

Cardno CEO Richard Wankmuller has resigned as the infrastructure consultancy posts another loss, of $176m.

Richard Wankmuller cited demands on a CEO, and health and family, in his decision to quit.

Infrastructure consultancy Cardno has reported the resignation of its chief executive as the group delivered more red ink to shareholders.

For the 12 months to June 30, Cardno (CDD) recorded a loss of $176 million, a modest improvement from last year’s $245.1m loss.

The result was driven by a post-tax impairment charge of $154.3m.

The news coincided with the departure of the group’s boss Richard Wankmuller, with the company saying he was no longer committed to the demands of the job.

“Being fully aware of the challenges and demands required of the chief executive over the coming 12 months and his present health and family requirements, Mr Wankmuller asked the board to consider his resignation,” Cardno said.

“After deliberation the board has decided to accept his resignation with immediate effect.”

His departure is effective immediately, with directors Neville Buch and Gary Jandegian taking the reins as the board hunts for a long-term replacement.

Mr Wankmuller will receive 12 months’ pay in lieu of notice as well as any accrued annual leave entitlements.

The ASX-listed group said its pre-tax earnings before depreciation and amortisation had met expectations, with EBITDA from continuing operations of $42.3m falling within the guidance range of $40m-$45m.

The group’s revenue edged up 0.2 per cent to $1.19 billion.

Cardno chairman Michael Alscher said the recent losses were unacceptable, but the board retained confidence in the group’s outlook.

“The new board has a strong sense of confidence in Cardno staff and the skills and projects we deliver on behalf of our clients,” Mr Alscher said.

“That said, as a board, we consider the operating structure and previous strategic decisions of the company, which has culminated in the company’s recent financial performance, as not appropriate for the future.”

Cardno declined to offer a dividend, although this had been flagged prior to the results.