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Shriro Awash In Controversy As Chairman Quits

Sydney based distributor Shriro Holding who has had three chairman in six months and recently reported a 35% fall in profits has called an Extraordinary General Meeting for the 14th of June, the notice was posted after the ASX had finished trading on Friday.

Serious questions are now being asked about the Company which distributes brands such as Omega, Casio, and Heston barbecues which have grown share in the US market during COVID lockdowns.

ChannelNews has attempted to interview CEO Tim Hargreaves on several occasions in an effort to get clarity on where the Company is heading.

A classic example of how the Company goes out of its way to minimise exposure about the Company was revealed  last Friday when 20 minutes after market close – disclosed it would hold the extraordinary general meeting in June to allow shareholders to elect a director.

No further details were provided by the Company that has lost directors, two chairman and staff during the past six months.

Persons wishing to be considered for election as a Director of Shriro Holdings Limited have till late today to nominate.

Qestions are also being raised about the future of CEO Tim Hargreaves who was appointed into the CEO role after running the Companies Casio business.

CEO Tim  Hargreaves has had to manage a procession of executive resignations with one insider who worked for the business three years ago telling ChannelNews that “There is hardly anyone at the Company now that were there three years ago”.

The exodus of experience is hurting the business. They are also finding it hard to find new experienced people today”.

Also in March 2022, Shriro Holdings Limited advised that Lisa Jones had also quit as Company Secretary.

She was replaced by Shane Booth as Company Secretary, effective from 24 March 2022.

Despite questions about the performance of the business, questions are also being raised about the increase in remuneration for Hargreaves during COVID lockdowns when the Company lost the distribution rights to Blanco and revenue started to fall.

When compared with other companies in the industry with market capitalizations below AU$281m, it appears that Hargreaves is on a pretty good wicket raking in a package of over $1.2M back in 2020 this was up 100% on what he got in 2019.

CEO compensation was reported as AU$1.2m for the year to December 2020.

Notably, that’s an increase of 60% over the year before.

Tim Hargreaves holds AU$289k worth of shares in the company in their own name.

Component        2020       2019       Proportion (2020)

Salary    AU$587k              AU$575k              48%

Other    AU$632k              AU$188k              52%

 

Total Compensation       AU$1.2m             AU$763k              100%

The Company claims that their US Everdure Heston barbecues business is up in the USA with the Company failing to reveal the actual revenues.

ChannelNews understands that the barbecue revenues in the USA are “small”.

The business that has $7M in the bank has a market capitalisation of $100m with questions now being raised about the governance of the Company more so than their performance.

The Australian newspaper claims that ‘someone, or something, about the behaviour of the board and management has seriously aggrieved major shareholder Ariadne, the investment outfit run by high-profile businessman Gary Weiss. Investors just had to read the fine print to find out’.

Back in March Hargreaves told the market that the transition of the company’s chairmanship from Stephen Heath ­to Cornelia Meyer was going without a hitch, she was gone two weeks later.

Also exiting the Company during COVID lockdowns was several key staff.

On March 23, 2022, a second director quit.

“Shriro … announces Ms Cheryl Hayman has resigned from the board of Shriro effective immediately.

Shriro Director Abigail Cheadle said, ‘I thank Cheryl for her contribution to the company over the past 2.5 years and wish her well into the future’.”

 



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