Ann: Trading Halt, page-17

Hi Croasian,

I enjoy your posts and admire your insights, but think you’re a bit harsh on Andrew Buckley.
My understanding based on whisperings from the inner sanctum at the time was that his departure was hastened by Chairman John Marlay. I had chatted with both several times. Andrew’s people skills and intellect were outstanding. Marlay was in a different league. I recall a company-wide strategy conference in the US where his contribution was a patronising lecture to an audience of senior managers on improving collection of aged debts (the strategy component: cashflow was needed because of non-performing acquisitions!).

It was Michael Renshaw who spear-headed the initial American acquisitions (under Buckley’s watch), and Renshaw was at the helm as MD when PPI was acquired. (And goodness knows where members of the Risk Committee were hiding when they decided not to hedge the new debt against the price of oil).

Renshaw’s growth strategy was even more aggressive – target was to go from 10,000 to 25,000 staff in 5 years.

Buckley had stepped down a few months prior. The rumours were that he had had enough of Marlay’s interventionist style.

Indeed, barely 6 months later Renshaw walked after a stand-up row with Marlay.

And things went from bad to worse under Marlay’s strategic guidance. I think John Durie summed it up well in The Australian 20/10/2015, ‘In one of the more gutless exhibitions of corporate board behaviour, Cardno chair John Marlay has effectively blinked and opened the door to control to Crescent Capital’.

Since then it’s been a long road to improvement under Crescent. Hopefully no more skeletons in the cupboard, but unfortunately years of frugality (due to blunders of the past) have seen many good people leave. It's so hard to turn around a train wreck in the professional services sector, particularly when your business model is that of an aggregator...