Trading results for the first three months of this calendar year at Pro-Pac Packaging show the company has continued to perform below expectations.
The company is currently conducting a strategic review of its businesses, implementing plans for improved profitability, and reviewing allocation of capital. It continues to assess its short term and medium term funding arrangements, with a priority on resolving its short term funding requirements.
Pro-Pac has now engaged Leaders on Demand to assist with the preparation and execution of the strategic review, and as part of the arrangement it has appointed one of Leaders on Demand founders, David Hewish, as its chief transformation officer.
According to Pro-Pac, Hewish is a specialist in tactical leadership, helping CEOs and their executive teams build sustainable value. The company says he brings a solid track record of leading successful large-scale business turnarounds and transformations.
Hewish will support the Pro-Pac management team for an initial period of six months, to assist with the implementation of the strategic review. Pro-Pac majority shareholder Bennamon will loan the company the funds necessary for the engagement of Hewish for the six months.
And, in a move it describes as a strategic initiative designed to reinforce the company's objectives and enhance its overall performance, Bennamon intends to sell a 5 per cent interest in Pro-Pac to Pro-Pac directors Mark Blackburn and John Cerini, and a 5.65 per cent interest in Pro-Pac to LOD Impact, an investment vehicle managed by the owners of Leaders on Demand.
Blackburn, Cerini and LOD Impact will not sell any of such shares for at least 12 months. Following the share sales to the trio, Bennamon will remain the largest and controlling shareholder of Pro-Pac Group, with a shareholding of 50.1 per cent.
Cerini has now stepped down from his part-time role as executive chairman, and will continue as non-executive chairman of the board, the move coming as Ian Shannon has now "successfully transitioned" into the CEO role.
Pro-Pac has also appointed Gavin Black to the board as a non-executive director. Black, who is investment director for Kin Group, was nominated by Pro-Pac majority shareholder Bennamon, and as such is not regarded as an independent director. Kin Group is Raphael Geminder’s investment company, and the owner of Bennamon.
