The chief executive of Aussie contracting group Service Stream has stepped down, following what he described as a "very disappointing" period for the company financially.
Service Stream provides, among other things, infrastructure deployment and management services to a number of local telcos and other utilities, making it one of the key contractors to companies like Telstra.
In a statement to the Australian Stock Exchange this morning, it said its chief executive Patrick Flannigan would step down after leading the company since September 2004. Claiming the company was positioned very well for a return to growth in the 2009/10 financial year, Flannigan said it was timely for a process of renewal to take place at Service Stream.
"It has been a pleasure to work with such a committed management team and I am very proud of what has been achieved at Service Stream over the last five years, in a very large way brought about by the efforts of our 4000 plus workforce," he said.
Service Stream has contracted an executive recruitment firm to undertake a local and global search for a replacement for Flannigan, taking also into account internal candidates.
The news came as the company said it had felt the impact of the "further softening" of the economy. It expects to report earnings before interest, taxation and depreciation of $30 million for the 2009 financial year, on revenue of $550 million, a result Flannigan described as "very disappointing".