AusGroup eyes turnaround under CEO Kimpton; banks on maintenance for recurring revenue
Lim Hui Jie – The Edge, Singapore – Published on Thu, Aug 19, 2021
When Shane Kimpton took over as the CEO of AusGroup in July 2017, he was the fifth person to take that job in six years. The company was in bad shape, struggling under a debt burden of A$150 million in the FY2017 ended June 30, 2017.
A month before Kimpton took over, the company was placed on the SGX Watchlist, following a slew of bad news. In 2016, AusGroup had defaulted on A$110 million worth of notes issued in 2014 at an annual rate of 7.45%.
Kimpton set out two goals for AusGroup to achieve under his watch. First, its debt load had to be reduced. Second, they had to seek recurring revenue streams and rely less so on project-by-project contracts.
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