Tegel chairman James Ogden unexpectedly quits after less than a year in the job

James Ogden
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Tegel Group chairman James Ogden has unexpectedly quit the board effective immediately after less than a year overseeing the poultry company's direction as a publicly listed company, without an explanation.

Ogden, who is also a director of Warehouse Group, Vista Group International, Summerset Group and Alliance Group, joined the Tegel's board ahead of its initial public offering in May last year, when it raised $284 million selling shares at $1.55 apiece. The shares rose as high as $1.80 in August, but have since tumbled, recently trading at $1.17 as a glut of chicken has driven down prices and seen investors lower their expectations for the company's earnings, which are scheduled for June 27.

"The board would like to take this opportunity to thank Mr Ogden for his leadership and dedication to the board and Tegel over the past year and wishes him all the very best for the future," it said in a statement without saying why he left. The company wasn't immediately available for comment.

Independent director David Jackson has been elected to succeed Ogden as chair, and the board has kicked off a process to find a replacement director, Tegel said.

Tegel retained just $1.2 million from the capital raised in last year's IPO, with $129 million going to repay existing shareholders, $130 million to repay external debt and $23.3 million on IPO and listing costs and an expensed management bonus. The company was taken public by its second private equity owner after Affinity Partners, which kept a 45 percent stake in the float, acquired Tegel in a leveraged buyout from Pacific Equity Partners and ANZ Capital in early 2011. PEP had, in turn, bought Tegal from HJ Heinz in 2005.

In December, Tegel warned annual earnings would miss the company's prospectus forecast due to the oversupply of chicken weighing on prices and as rising freight costs squeezed margins. Annual underlying earnings before interest, tax, depreciation and amortisation are expected to be between $75 million and $85 million in the year ended in late April, down from projected proforma earnings of $87.4 million for the 2017 year, while net profit will likely be between $33 million and $41 million, compared to a projected $45.6 million. The company affirmed that forecast in a presentation last month.

(BusinessDesk)


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Unexpected, immediate, without saying why he left, unavailable for comment. Looking forward to the follow up article NBR.

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So much for continuous disclosure!

A Chairman resigning a year after an IPO which has already proven to be grossly optimistic with its forecasts.

A Chairman who has resigned when the company is in the process of finalizing its F17 year end accounts.

Wonder if his resignation has anything to do with the forecast made in Dec 2016 that a strong second half is expected to help the company meet its (then already downgraded) full year's forecast of $33m to $41m.

Anyone else sense another profit downgrade is in the offing?

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Followed by the usual dividend cut.

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Word on the street is that he has gone vegetarian.

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A fowl business, thats for sure

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Just another company boss to shoot though after a bad result. Yet again no accountability. Any news on a nice big handshake to soften the blow?

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Bad governance never ceases

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Number one rule every board member/manager should remember... never take a job offer from a Private Equity firm... especially if they are looking to exit the business. Never.

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Remember Feltex or Fortex ?
private equity floats have to be viewed with suspicion.

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I suppose the only reason that they listed in the first place is that they had to raise money by selling shares. After that they don't care. They just do their three of four years, make their money, then get out and leave it to the next guy.

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I believe there's a good chunk of shares in escrow until the share price is significantly higher than it is at present - something like 20% higher than issue price maybe?

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