Melbourne IT loses CEO amid business restructure

Melbourne IT has announced that its CEO Theo Hnarakis will step down later this year, when a suitable replacement for him has been found.

The announcement of the CEO's impending departure came with its half-year results. Overall, the company has been experiencing a 9 percent year-on-year decrease in revenue, hitting AU$51.3 million in its latest figures. Its earnings, however, have been positive, with the company achieving EBIT of AU$2.5 million, up 4 percent year on year.

The company is now going through a restructure, selling off its Digital Brand Services and ForTheRecord divisions for AU$158.8 million earlier in the year. Its SMB Solutions and Enterprise Services offerings are expected to take up the slack of the work cut out for the business, with the company chair Simon Jones reassuring investors that it remains committed to these aspects of Melbourne IT.

It has, however, come at a cost to Hnarakis.

Jones said in the company's results that the overheads in the company must be brought into line with its new structure, and after discussing the matter with Hnarakis, it was mutually decided that the CEO would depart from the business. Hnarakis will remain with the company for the meantime, until his successor is found.

Hnarakis is not the only senior employee to leave the company. Non-executive director Andrew Walsh indicated to the board that he will not put himself forward as a candidate at the next annual general meeting, leaving it at the end of the month.

"Additional members of the senior leadership team will also step down before the end of this year as part of this process, given the reduction in support requirements and the need to remove stranded overheads coming after the sale of DBS and FTR. These individuals have all made a meaningful contribution to Melbourne IT's success over the period of their time with the company," Jones said without providing the names of those leaving.