Nic Jones resigns from CEO position at Pureprofile
Nic Jones, the CEO of the financially troubled Pureprofile, has resigned, with chairman Andrew Edwards to fill the void as executive chairman.
The changes are effective immediately, and come as the company posted a $10.7m net loss after tax to the ASX, and announced amendments to its debt facilities.
Jones had been attempting to turn the company’s fortunes around, and previously admitted it needed to get better at communicating with the market about what it actually does.
Two weeks ago, Pureprofile released its unaudited results to the ASX, revealing a $0.7m loss. Within that announcement, the company noted its total debt was $16.5m and that it was“exploring capital restructuring initiatives and other strategic options”.
Pureprofile’s financial results released today (Click to enlarge)
Today, in its statutory results, the company revealed its revenues were down 27.1% to $37.875m for the 2019 financial year. It made a loss of $456,684 before interest, tax, depreciation and amortisation (EBITDA), a decline of 161.6%.
Revenue from continuing business for the 2019 financial year was $26.8m, up from $25.4m last financial year, and the data and insights arm of the business was up 15% from FY18’s $16.1m to $18.4m.
Pureprofile’s business units’ performance (Click to enlarge)
The loss from ordinary activities was $10.702m, down 58.8%.
It has, however, reached an agreement on its existing loan facilities with Lucerne.
From September 1, the maturity date will be extended to October 1 next year. Interest will be repaid at 20% on all draw-down facilities.
Edwards said the new debt arrangement gave the company more certainty as it attempts to turn things around in the 2020 financial year.
Lucerne’s co-founder and head of funds management, Aaryn Nania, will be replacing Jones on the Pureprofile board as a non-executive director.
Jones said it had been a busy year for the business, and he looked forward to seeing what it did next.
“I’m grateful for having been given the opportunity to oversee the positive transformation of Pureprofile,” he said. “It has been a busy year for Pureprofile and I look forward to seeing Pureprofile reach its full potential.
Jones is moving on from Pureprofile
“I would also like to thank our talented staff, who have been a joy to work with and an absolute asset. This has been a truly rewarding experience and I wish the company every success in its future.”
Edwards praised Jones’ efforts to transform the company.
“On behalf of the board, I’d like to thank Nic for his contributions to the company during a challenging period in which he successfully restructured and turned around the business,” he said.
“With a new financial year upon us, and the company in a much stronger position, the current management team are well positioned to capitalise on the momentum built with Nic over the last 18 months.”
The changes will also see former CFO Melinda Sheppard promoted to chief operating officer.
To understand more about Nic Jones’ time with Pureprofile, and what might be next for the company, you can read Best of the Week: An impossible job on Mumbrella Pro. A seven-day free trial is available now for new subscribers. Mumbrella Pro also features audio and video from Mumbrella’s suite of conferences, including Mumbrella360 and the recent Finance Marketing Summit and Health Marketing Summit.
A 20% loan? These guys are sharp negotiators.
Or does it value the risk in the business correctly?
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Hello Mumbrella, these numbers reported aren’t accurate as it doesn’t tell the whole/real story. Doesn’t accurately differentiate between EBITDA v NPAT figures which we all know are very different and continuing business is up. As a Mumbrella supporter not keen on driving traffic elsewhere but the Adnews story was the accurate one with the key (correct) figures:
– full year loss of $10.7 million and renegotiated its debt at a 20% interest rate.
– overall revenue down 27.1% to $37.87million but growth in its core Data and Insights business with revenue up 14% to $18.4 million.
– continuing business revenue was $26.8 million, up from $25.4million.
Best to to fix up this story guys. Love your work.
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Does anyone actually care about what is happening at Pure Profile?
Never have I seen such an irrelevant company receive so much coverage
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Good man near impossible task
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Hi Jason,
Thanks for your comment and ongoing support.
Re your corrections, and my figures being incorrect vs AdNews’ figures:
– full year loss of $10.7 million and renegotiated its debt at a 20% interest rate.
My story says this already.
My second paragraph says: “the company posted a $10.7m net loss after tax to the ASX, and announced amendments to its debt facilities”.
Further down, I cite the 20% interest rate: “Interest will be repaid at 20% on all draw-down facilities.”
– overall revenue down 27.1% to $37.87million but growth in its core Data and Insights business with revenue up 14% to $18.4 million.
I say: “in its statutory results, the company revealed its revenues were down 27.1% to $37.875m for the 2019 financial year.” I have the screenshot from Appendix 4E which shows this, directly above it.
I have added in a line re the growth in data and insights business, and a table to show the breakdown of the business units. Thanks for pointing out this was missing.
– continuing business revenue was $26.8 million, up from $25.4million
In this instance, I have cited the revenues from ordinary activities ($37.875m, down 27.1%) as per the previously mentioned screenshot.
I have added in the figure about continuing business revenue for clarity:
“Revenue from continuing business for the 2019 financial year was $26.8m, up from $25.4m last financial year.”
Apologies for any confusion, and hopefully this makes it clearer.
Vivienne – Mumbrella
I’m interested, if you aren’t maybe don’t click on the articles?
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How are they still on the ASX?
Surely bankruptcy is on the cards.
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No, far from it. Strong cashflow, improving revenues, some silly acquisition mistakes, however – this company is ripe for takeover and is probably in play now.
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