Ardent CEO Simon Kelly quits

“I am pleased that we have made real progress on our strategic and operational priorities,” Mr Kelly said. “I remain very positive about the potential of the Group’s businesses.”

An Ardent spokesman, however, said Mr Kelly decided to leave the company over differences in style with the Gary Weiss-led board compared with George Venardos-led board that appointed him in April.

“This is not the board he signed up to six months ago,” the spokesman said. “There was a fundamental change in style, hands-on approach towards the business.”

Shares in Ardent, which owns the Dreamworld theme park and US-based Main Event Entertainment business, fell 7c, or 3.6 per cent, to $1.81 in trading on Wednesday after the announcement. While they have recovered from the low of $1.56 they touched in March, after weaker-than-expected half-year results, they remain well below the $2.35 at which they were trading before the 25 October 2016 accident.

Mr Kelly’s resignation is immediate and he will be replaced on an interim basis by chief financial officer Geoff Richardson, while the search for a new chief executive takes place. Newly appointed US-based director Brad Richmond will oversee Main Event until the previously announced search for a US-based head of that business was complete, the company said.

His short tenure is just one part of a turbulent past year at the entertainment company that has tried to recover from the fatal Dreamworld accident that killed four people last year, and also from weaker-than-expected performance at its US business, which now accounts for more than half of total revenue and profit.

He was named by former Ardent chief executive Deborah Thomas as her successor in April, around the start of the fierce corporate battle that started when Dr Weiss’ company Ariadne bought a significant stake in the troubled company.

In June, Ms Thomas stepped down three weeks ahead of the previously announced July date to make way for Mr Kelly. He subsequently said Ms Thomas’ continued involvement in the company – trying to recover from the Dreamworld accident – was creating ‘unnecessary noise’.

Chairman Dr Weiss, who in September toppled George Venardos as chairman, after prevailing in his bid to win board representation for his vehicle, the 10.9 per cent shareholder Ariadne, thanked Mr Kelly on Wednesday and expressed regret over the move.

“The board of directors is disappointed with Simon’s resignation and would like to thank him for his contribution to the group and wish him well in the future,” Dr Weiss said.

Separately, Ardent also said in the statement it was trading “broadly” in line with expectations for FY18 Core EBITDA earnings but that depreciation charges for the year to June 2018 were likely to be $10 million prior than the previous corresponding period, due to costs incurred on new Main Event, Kingpin and Playtime centre openings.

At Main Event, while revenues at a number of the centres opened in FY17 and the acquired Latitude centres “continue to be challenged”, revenue in the 18 weeks to 31 October on a same-store basis were up 0.3 per cent on the prior equivalent period, Ardent said.