06 Jul ASX ANNOUNCEMENT: New CEO to be Appointed
Pureprofile Limited (ASX:PPL or the “Company“) is pleased to provide a market update – new role for CEO, Paul Chan; completion of Cohort transition; FY17 trading update.
Following consultation with the Board of Pureprofile, Mr Paul Chan, the founder and current CEO of Pureprofile, has decided to move to a new role as Chief Innovation Officer. Paul will remain on the Board of Pureprofile as an Executive Director and will transition into his new role following the appointment of a new CEO.
Pureprofile’s Board has commenced a search for a new CEO with extensive experience in managing fast-growing digital companies.
Explaining his decision to move into the new role, Paul Chan said:
“Over the past 17 years, Pureprofile has evolved from a start-up disruptor in the online research market and into a substantial digital company with more than 230 staff and offices in major markets around the world.
“I am immensely proud of what we have achieved to date, but I am even more excited by the opportunities for our company in the coming years. The Board and I believe I can best support our future growth by ensuring that Pureprofile’s products and technologies remain innovative and world-class through my continued role as an Executive Director and Chief Innovation Officer.
“I look forward to working with the new CEO, our leadership team and Board to ensure the success of this new appointment and the transition to my new role. I remain committed as ever to supporting Pureprofile and continuing over the long-term as an employee, director and shareholder.”
Executive Chairman of Pureprofile, Mr Andrew Edwards said:
“When Paul founded Pureprofile, he was one of only a small group of visionaries that understood how the internet would transform the media sector. Today, Pureprofile is a diverse and global digital company built upon Paul’s vision and thought leadership. To continue to grow rapidly and expand globally, we must continue to innovate and supply the very best products and services using the best technologies. In his new role as Chief Innovation Officer, Paul will be able to fully focus his enormous talents and experience in this area. The Board believes that this will be extremely valuable to Pureprofile and our customers.”
Completion of Cohort transaction
The 30th June marked the conclusion of the 12-month earn-out period and the substantial completion of Cohort’s integration into the Pureprofile group. To position for further growth in FY18, Pureprofile has changed Cohort’s management structure and will make further integrations and pursue additional synergies as follows:
Changes to Cohort Management Team
Effective 1 July 2017, Mr William Langton became Global Managing Director of Cohort and joined the Pureprofile leadership team. He will now oversee the management of the Cohort business unit. Mr Langton was one of Cohort’s first employees and has been Chief Financial Officer at Cohort for over seven years. Most recently, Mr Langton was instrumental in leading the Cohort sale process on behalf of Cohort’s vendors and has been assisting with the development and implementation of the integration plan.
Following completion of the earn-out period, Cohort founders Marcelo Ulvert and Malcolm Treanor, stepped down from their daily, operational roles, effective 4 July 2017. They will continue to assist with any remaining handover matters as requested by the Company until 31 December 2017.
Further Integration and Synergies
A key priority in H1 FY18 will be the integration of Cohort’s database of online leads within Pureprofile’s data management and insights platform. By combining the key assets of the businesses, Pureprofile will boost its data and profile capabilities while Cohort will have the opportunity to cross-sell additional products within its lead generation services.
The integration process has also now progressed to the point where Pureprofile will be able to realise substantial cost synergies across the Group. These cost savings are expected to largely relate to operational efficiencies and the elimination of duplicated roles and facilities.
Commenting on the appointment of Mr Langton, Mr Chan said:
“I congratulate and welcome Will as Global Managing Director of Cohort. As a Cohort employee from day one and with the level of detailed understanding of and enthusiasm he possesses for the business, there is no one better suited to take the business to the next level.“
Mr Langton said:
“Pureprofile and Cohort have shared values around empowering the consumer, which has facilitated the smooth integration of the businesses. I look forward to working together with the team to create a first-class global company.”
FY17 Trading Update
The Company is pleased to report that its unaudited FY17 statutory revenue is expected to be approximately $52.6m.
Pro forma FY17 revenue (statutory revenue adjusted to include a full 12 months of Cohort’s revenue) is expected to be approximately $62.9m.
Statutory and pro forma operating EBITDA margins are expected to be in line with or exceed the EBITDA margins achieved in H1 FY17 of 7.7% for statutory operating EBITDA and 10.8% for pro forma operating EBITDA.
The full-year audited financial statements will be released to the market in late August in accordance with the Company’s audit timetable.