MOUNTING LOSSES FORCE OUT PEGASUS BOSSES

Ongoing multi-million dollar losses at one of the country's biggest commercial print business, Pegasus Media & Logistics, have seen majority owner Sir Michael Bromley show both his CEO and CFO the exit door.

Pegasus has had a difficult last two financial years, being deeply in the red, and, clearly, sacking the CEO and CFO just before the current financial year end shows this year will be little different.

Pegasus lost a whopping $3.8m in the 22/23 financial year, and then lost even more last year, ending the year with pre-tax losses of $6.3m. The company had an equity deficiency of $9m as at June last year, it was $6.33m the previous year, and $1.4m the year before that. Revenue was static in both years at $60m, but this is a $20m drop from the $80m in the 21/22 year.

CEO Mark Atkinson and CFO Frank Shapter have just cleared their desks. They only joined 18 months ago, taking up their roles in January last year. Bromley has now installed his own finance man, Peter Wong, as CFO, with former construction industry boss Michael Sherlock as CEO. Print21 understands both may be interim appointments.

It is Bromley himself who is supporting the company through the tough times, but after just 18 months of the new top team he had clearly seen enough of their efforts, and decided their approach was not working.

Atkinson took over as CEO from former boss Kevin Slaven, who joined after Ovato crumbled. Slaven stayed at Pegasus for 18 months, taking over as CEO on the retirement of long-time CEO Wayne Finkelde, under whose tenure the company achieved an unbroken succession of profitable years.

Print21 understands the last two financial years, and this current year, have seen overheads blow out. Additional management have been added, and a $2.8m spend on long term lease on the old Masters building in St Marys, NSW, to house the SOS business it bought, and to consolidate some of the Pegasus operation into from Blacktown, have contributed to the outsize costs. Print21 also understands that both its main buildings, in Blacktown and St Marys, have a significant amount of unused space.

Pegasus fired a dozen production staff two months ago, staff numbers now are down to around 170, compared with 220 when Finkelde retired in 2022. Pegasus also lost Michael Schulz, general manager, 18 months ago, and its former sales manager Ross Muirhead, who went to QLM Label Makers at the same time.

Atkinson joined Pegasus two years ago as general manager of operations, before being promoted to CEO six months later. He came from Ovato with a 27 year track record in print, including a stint at MAPS, which was bought by AAB, the Pegasus owner, some twenty years ago. In addition to his role at Ovato, he also worked in senior roles at Rotary Offset Press, Williams Lea, Offset Alpine, Griffin Press, and PMP.

Pegasus is in the top tier of independent Australian print businesses. Its Blacktown site has three offset presses, including a pair of ten-colour B1s, and a massive Roland 806, used for display work. It sold one of its presses three months ago. Manufacturing runs 24 hours a day, five days a week. It prints offset, digital, and has a significant sign and display print operation.

Three years ago, the main AAB print businesses – Pegasus Print Group and SOS Print + Media – along with F&M Supplies and AB Warehousing & Logistics began operating as one brand, Pegasus Media & Logistics.

AAB is majority owned, 83 per cent, by Sir Michael Bromley, through his Redwing vehicle, which has interests in many fields, with Gerry Anderson, the other shareholder, having the minority stake.