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Hellaby executives quit in shake-up

NZN 10/05/2016 Sophie Boot

The chief operating officer and chief investment officer of Hellaby Holdings have quit as the company announces it is restructuring its business.

In a statement, the diversified investment company said it was moving towards a decentralised business model with a smaller corporate team.

It will not replace outgoing COO Neil MacCulloch or CIO Greg Batkin, following a six-month review by managing director Alan Clarke who joined the company last November.

"This means the individual business groups will take on full responsibility for their own performance outcomes and they will now drive their own market development," Mr Clarke said.

He will be a significant reduction in Hellaby's corporate overheads as a result.

The shares fell 2.2 per cent to $2.64 and have dropped 8.2 per cent this year.

It will update the market on guidance in three weeks after a weaker-than-expected second half.

Hellaby has four segments - automotive, oil and gas services, equipment and footwear, which it is looking to sell.

Expected second-half gains from the oil and gas segment did not materialise, the company said, as ongoing oil price and production volatility had continued to impact on refinery maintenance schedules.

In February, Mr Clarke said 12-year low oil prices meant refineries had pushed out work to take advantage of fat margins in the first half, scheduling maintenance in the second half of the year, and he anticipated record months in March, April and May.

"The expected second-half contract work has not eventuated at the levels estimated prior to Christmas as a number of our Australian and Middle East customers have again pushed out scheduled maintenance work even further," Mr Clarke said.

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