Photon CEO Criticizes 'Old Guard'

In Australia, Photon Group CEO Jeremy Philips has criticized the company's former management team and company culture, in a statement delivered at the marcoms giant's AGM.

Philips joined Photon in April, and has since been landed with overseeing a company restructure resulting from increasing financial difficulties.

In July, Photon - which owns research agencies The Leading Edge and Jigsaw Strategic Research - struggled to raise the necessary finance to recapitalise and renegotiate $176m worth of earn-out payments due to owners of some of its 45 agencies.

However, in September, Philips completed the recapitalisation through the issue of of $103m worth of new shares, and earlier this month, the group announced the beginnings of a turnaround when it reported earnings 'in line with last year'.

Press reports describe Philips' AGM statement as a 'thinly veiled attack' on Photon's former Chairman Tim Hughes, who left the firm in August.

Looking to the future, Philips told shareholders at the AGM that the firm will grow 'by prioritising the most attractive organic opportunities, rather than focusing on acquisitions'.

'We will be vigilant to avoid the hubris in which acquisitions are celebrated as victories in themselves,' he added.

Philips also confirmed that Photon's worldwide network of agencies will be reduced by at least 25%.

Web site: www.photongroup.com .