Estia Health turmoil claims CEO Paul Gregersen

The boss of the aged care firm has stood down and an interim CEO appointed following disappointing results.

Paul Gregersen has stood down as CEO of Estia.

A tumultuous year at aged care company Estia Health has claimed its biggest victim, with chief executive Paul Gregersen standing down with immediate effect.

The unexpected decision sees current non-executive director Norah Barlow cast in the role of interim chief executive while the embattled group (EHE) hunts for a long-term replacement.

The activity comes a fortnight after the sudden exit of founder Peter Arvanitis from the board and significant shareholder register, with Estia saying today a search was underway for new directors.

It also comes after Estia’s full-year numbers and full-year 2017 guidance fell short of expectations.

Investors welcomed the news of change in the upper reaches of management, sending Estia shares up as much as 5 per cent.

At 10.25am (AEST), it had pared gains in rising 3.2 per cent to $3.19. Its shares are still down 56 per cent on the year to date.

Estia chairman Pat Grier expressed confidence in Ms Barlow’s ability to kickstart a turnaround at the group.

“We are very fortunate to have someone of the quality and experience of Norah to step into the CEO role while we undertake a global search for a permanent CEO,” he said.

Ms Barlow was formerly CEO of ASX and NZX-listed Summerset Group, a retirement village operator, and currently serves on the boards of Evolve Education, Ingenia Communities, Cigna Life Insurance, Vigil Healthcare and Methven Group.

“We have a strong business and management will be focusing on maximising value and growing Estia’s core profitable businesses,” she said.

Norah Barlow

“Estia has a highly competent and experienced staff and excellent facilities. I am looking forward to working closely with our staff and management in the coming months.”

Ms Barlow will continue her directorships while assuming the role of acting chief executive at Estia.