Allied CEO Stepping Down

Allied Farmers’ Managing Director, Rob Alloway, is to step down from his current role in December this year.

Alloway will remain on the board of Allied Farmers and its subsidiaries in the meantime. He has given notice to the board to allow a timely search for a new CEO and a measured handover of the business.  

Alloway said "the time was right to step down from the hands-on, day-today role of running the business as the restructuring process which began about a year ago was nearing completion."  

Yet the market is likely to see his period at the helm of the rural services group as notable for the ambitious acquisition of Hanover Finance and United Finance assets and the impact on Allied Nationwide Finance, events which overshadow his successes with the group.

The deal saw the company issue 1.9 billion of news shares at appproximately 20c each to acquire $400m of assets from Hanover and United. The valuation has plunged over recent months and the company's share price is down to around 2.5c.

Alloway is the founder of Allied Capital which was brought into the group. He is a former chief executive of dairy sector engineering group NDA.

The chairman of Allied Farmers, John Loughlin, recently stepped down from that position.

The Allied Farmers board acknowledged Alloway's “strong and insightful leadership during a  period of tremendous change,” and said that whilst they were disappointed he was changing his role from an executive, his ongoing involvement as a director means he will continue to contribute to the company.  

"With the restructuring process now coming to an end, and several asset realisations likely in the short term, the company will be in a different position in December when I step down," said Alloway. "My key goal was to establish a more stable financial platform and normalise the company's banking and other commercial arrangements."  

Alloway said that "we are expecting this process will be completed in the next few weeks leaving the business with substantially reduced senior debt and feel it is right to now give the Board time to identify a new CEO to take the company forward after a challenging period."  

Alloway said staff, suppliers and shareholders had been very patient and that patience and loyalty had given the board and management the time they needed to navigate through a difficult process.  

"We've had to make some very tough decisions along the way but we are now close to reaching the stable ground we need to rebuild what I still believe will be a very sound and respected rural services business."  

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