By Jamie Freed
Helloworld chief executive Elizabeth Gaines has handed in her resignation after 15 months at the helm of the Qantas Airways-backed travel agency group, making her the second short-lived boss in a row as the company undertakes a major transformation program.
"I've been with the business for seven years," she said, including her time as the company's chief financial officer. "I've decided after that seven-year period it was time to look for other opportunities."
Chief executive Elizabeth Gaines will remain with the company through her six-month notice period until a successor is found.Credit:
Her predecessor, Rob Gurney, quit the company last year after only 18 months on the job after introducing a major rebranding program. The Helloworld brand was introduced in 2013 and many franchisee stores previously branded as Harvey World Travel, Jetset Travelworld and Travelscene American Express have been converted to the new brand. Helloworld has also been looking to increase its online presence.
Under the leadership of Ms Gaines, Helloworld's share price has risen by 15 per cent, compared with a 10.4 per cent rise for rival Flight Centre Travel Group and a 6.3 per cent fall in the benchmark S&P/ASX200 index over the same period.
In April, major shareholders UBS and Europe Voyager sold a 7 per cent stake in the company to an existing shareholder, inbound travel company AOT Group, which boosted its stake to 10.2 per cent. Ms Gaines said the changes on the register had nothing to do with her departure.
Qantas remains the largest shareholder with a 29 per cent stake, although the airline's chief executive Alan Joyce last week told The Australian it could be sold over the longer term once Helloworld completed its transformation program.
The right time
Ms Gaines said she would remain in her role during the term of her six-month notice period until the board found a successor but she had decided it was the appropriate time for a change of leadership and for her to pursue other opportunities. Ms Gaines is also a non-executive director of iron ore miner Fortescue Metals Group.
Ms Gaines, who has a background in other industries including media and banking declined to say whether she would remain in the travel industry or even if her next role would be executive or non-executive.
"For now my focus is on being in this role [for the next six months]," she said. "Then I'll make that decision as and when I come to it."
Helloworld chairman Brett Johnson said he was disappointed she was leaving but respected her decision. "The board will commence a search process for Elizabeth's replacement to lead Helloworld through the next phase of growth," he said.
Helloworld's revenue and earnings have been declining as it works to transform the business. In the first half, its adjusted earnings before interest, tax, depreciation, amortisation and impairment fell by 44 per cent to $10.6 million, in part due to increased marketing costs to support the new brand.
But the company did win the Whole of Australian Government travel management contract which had previously been divided among several companies. JPMorgan expects that will contribute an additional $700,000 to EBITDA in the 2015-16 financial year.
I've decided after that seven-year period it was time to look for other opportunities.
Elizabeth Gaines
Ms Gaines said her proudest achievement at Helloworld was establishing a network of 1500 branded and independent agents across Australia, as well as a growing online presence for the company. As of last November, one in four Australian travellers was aware of the brand, up from only 10 per cent in April 2014. She said another brand awareness survey would be undertaken soon.