The move comes a month after MItchell persuaded Blue Star bondholders to a new $25m debt restructure, with the bondholders agreeing to reduced terms, which effectively enabled the $300m trans-tasman company to keep going in its present state.
Speaking to i-grafix, Mitchell says, “On Wednesday I informed the Board of my decision to resign from Blue Star. My last day will be November 11. The Board has initiated a search for a successor, in the meantime it is business as usual and Graeme Archer, group chief financial officer, will be interim group chief executive officer.
Over the three years that Mitchell ahs been in charge Blue Star has formulated a new strategic direction and business model. Mitchell believes the company has made the difficult decisions on restructuring the business for growth in a challenging market. He says, “I am happy that Blue Star is in better shape than when I arrived over three years ago. We now have a strategy that will lead the company into areas for greater profit potential and away from the over capacity, low margin areas of the market that have been a drag on the company’s profit potential in recent history. The Board is committed to this strategic direction.”
He adds that, in support of its strategy, Blue Star has increased its investment in new capital equipment in 2010 from $9m, to $20m in 2011, and it has an approved budget for over $30m of additional investment in 2012. He says, “As a company this is about providing the best tools for our employees and the best solutions for our customers and better returns for our investors. The business is in a position to substantially grow its profits this year. The new Webstar plant in Auckland has taken us into being a market leader in the New Zealand magazine business. Our New Zealand Print business has won one of the largest contracts in New Zealand print history with its Government Print Hub contract. In Australia we have renewed our investment in Print ACT, which is now one of top facilities in the group.”
The company will deploy its Agile technology Victoria in Q2, after being successfully deployed in Sydney late last year and ACT last month. The Victoria implementation completes the Australian roll out. Mitchell says, “The capacity in our mailing business is massively increasing, and the business recently did a spectacular job delivering one of our largest jobs ever with our new technology. Finally, we are deploying a break through digital printing technology into Sydney and ACT. We can simply print faster, better quality, and with unmatched solutions for our customers.”
Blue Star has also just ordered a pair of high speed inkjet web presses, so staking an early claim to the fledgling inkjet market.
Mitchell concludes, “The refinancing we recently completed, gives the runway to fully implement our strategy of innovation and having a stronger business in a difficult market. It was for me and my family a very tough process, and after securing the new financial package and with time for reflection, it is time for me to move on.”
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter