Page 3 - Stakis C Case Study
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Case ‘C’ – Professional Management
In the depths of a cold December morning in 1991 David
Michels entered his new office at 3 Atlantic Quay, Glasgow.
This was the company's newly leased headquarters.
Appointed as chief executive with an inducement of over
£90,000 and a potentially, lucrative share option he is a man
of average physical size who nevertheless commands
attention by sheer force of personality, directness, and plain
speaking. A man who admits he loves a challenge, but is not
a workaholic, who finds relaxation in his passion for cards
(poker) and tennis. Apart from three years in charge of
Ladbroke's gaming machines interests he had worked in
the hotel industry all his life, previously having worked for
Grand Met. In all, 15 of his 25 years in the business had been
spent in sales and marketing.
His first task was to review the situation facing him. He
freely admitted that it ‘scared’ him. Based on the figures in
front of him things were bleak:
1990 1991 1992
Turnover £m 150.3 171.5 154.1
Profit/(loss)
before tax £m 30.8 (50.5) (47.4)
Profit/loss
after tax £m 32.6 (48.5) (47.3)
Earnings (loss)
per share p 12.14 (17.87) (17.38)
Dividend
