Funtastic picks new CEO to lead recovery

Struggling toy wholesaler Funtastic has named a new CEO as it seeks to turn its fortunes around.

Funtastic is hoping for a lift from the new Toy Story move. Pic: AP

Funtastic’s incoming chief executive faces a tough road ahead as the toy wholesaler looks to realise an ambitious turnaround.

On Monday, Funtastic announced that former Sunbeam CEO David Jackson would take up the top job after Steven Leighton resigned earlier this year for family and personal reasons.

The appointment follows a tough period for the company, after its fourth largest trading partner, Toys ‘R’ Us, collapsed last year prompting Funtastic to downgrade its earnings.

Still, the company swung to a full-year profit in 2018 following several-loss making years, booking a net profit after tax of $28.2 million for the 12 months through July 31.

Mr Jackson, who will take up the top job in early May, was most recently managing director of Britax Childcare, where he drop substantial growth. Prior to that, he held senior management positions within Myer, Pacific Brands and Pacific Dunlop.

“We are excited to have David join the Funtastic business in this key leadership role at an important point in the company’s history,” chairman Shane Tanner said.

“David brings a wealth of experience in consumer products and has a track record of developing and executing strategic plans to deliver top and bottom line growth.

“David has a deep and practical understanding of the requirements to develop and build brands that will ensure Funtastic can unlock value.”

Funtastic shares closed unchanged on Monday at 4.2 cents, down from 13 cents a year ago.

Earlier this month, Funtastic downgraded its revenue guidance for the second half amid weakening consumer confidence and sluggish retail trade, as it unveiled an interim net profit down almost 60 per cent on the prior period, despite NAB writing off $15.7m of debt during the period.

Delays to three projects would mean that revenues and margins for the second half would be lower than previously expected, while key retailers had become cautious following soft December quarter trade, which was expected to impact margins, the company said at the time.

Still, Funtastic said it had a number of sales and business initiatives already underway, including the launch of Toy Story 4.

Announcing the appointment of its new chief executive, Funtastic said Mr Jackson had a successful track record of steering organisations through competitive markets and getting the “basics of business” right in order to establish sustainable platforms for growth and innovation.

He “combines a deep knowledge base in product development, supply chain, retail and consumer channels with a dedication to overhauling product categories and developing leadership capability”, Funtastic told the market yesterday.

AAP