Coventry Group Limited (ASX:CYG) Announces Management and Operational Update
Management Changes
Coventry Group Limited (ASX:CYG) announced that Managing Director & Chief Executive Officer, Mr Robert Bulluss, has tendered his resignation and will leave the Company no later than 20 September 2025.
Executive Comments
Mr Bulluss commented, “Since being appointed as Chief Executive Officer in May 2017 we have re-built what was a badly broken business. Along the way almost the entire Senior Leadership Team has been renewed; a poor corporate culture has been rejuvenated; we have successfully acquired and integrated 7 accretive businesses; the implementation of a new ERP system is largely completed; and much more. It has been a challenging 8 years but I am satisfied the business is in much better shape and that we now have a solid platform for continuing sustainable profitable growth. By the end of my tenure in September 2025, with much of the transformational heavy lifting well advanced, I have formed the view that is an ideal time to hand over the leadership.” Coventry Chairman, Mr Neil Cathie commented, “On behalf of the Coventry Board I have accepted Robert’s resignation and understand his desire to step aside after a very challenging 8 years, to take a break and pursue other interests and opportunities. Robert has always demonstrated resilient and values-driven leadership and has built a Senior Leadership Team comprising talented professionals who will continue to grow the business. I have thoroughly enjoyed working with Robert throughout his tenure and sincerely thank him for his tremendous contribution and personal dedication for the benefit of the Company and its shareholders, our customers and all Coventry Team members.”
Revised Management Structure
The Board announced that Mr Nik Alpert will join Coventry as Head of Trade Distribution commencing 1 April 2025. Mr Alpert brings over 20 years of management and sales experience in large private and public distribution businesses. Additionally, Mr Brody Sewell, Fluid Systems’ General Manager, has been appointed Head of Fluid Systems. Brody and Nik will report directly to the Board, creating a flatter structure for improved operational leadership and decision-making.
Operational Priorities
Coventry Group Limited outlined key operational priorities, including network optimisation in Trade Distribution Australia. Konnect Australia improved profitability from a loss of $7.5 million in FY17 to over $5 million EBITDA annualised run-rate in 1H25, with further gross margin improvements of 500 basis points. The Board identified initial focus on enhancing profitability across 11 underperforming branches, expected to deliver incremental EBITDA of approximately $2.4 million. Additionally, the Board is pursuing cost savings of $2.5 to $3.5 million annually through procurement efficiencies, service provider savings, post-ERP efficiencies, and acquisition synergies. With the ERP system now live, Coventry anticipates significant improvement in operating cash flow and benefits from $50 million in available tax losses in Australia.
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