Fronde feeling some pain… at diversity.net.nz

I’ve had a little bit to do with a few of the Fronde blog rats (not rats in a derogatory term - one of endearment only!)

Their recently departed CEO, Jim Donovan, is a blogger of high regard (check out his blog) and a number of Fronde insiders (including the irrepressible MiramarMike)are blogging buddies as well.

I know very little however about the business itself. A recent comment on Jim’s blog from “angry shareholder” begs some questions. The comment went;

Good god man!! No wonder you’re leaving. Look at the result. The buck has to stop with you.

You couldn’t run bath, let alone a company!!!

I hope “things you want to do” doesn’t involve some other poor company.

Obviously it’s a way to extreme comment but it is in reaction to Fronde’s announced loss of $2.87 million on flat operating revenue of $16.9 million. Revenue was almost identical the previous financial year when the company recorded a profit of $647,000.

Jim responded exceptionally well (considering he’s left Fronde) by saying;

I absolutely understand your anger - I’m a shareholder myself. It happened on my watch and I’m responsible. We went for growth and we didn’t get it. But I think we reacted quickly when it became apparent, and the recovery plan we put in place is already delivering a significant improvement. However, that won’t make the first half figures any more acceptable.

Now I’m sure that Jim’s leaving Fronde has nothing to do with the lack of results - he’s helped put in place a plan to restructure, reduce costs and return to profitability next year. But it does however show the scrutiny that being captian of a publicly listed company brings to an individual.

Have a well earned break Jim!

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