AD1 Holdings Limited (ASX: AD1) announced that the company’s managing director and CEO Brendan Kavenagh has tendered his resignation, effective today.

The board has appointed Todd Perkinson as successor to the role of CEO, effective immediately. Kavenagh will remain available to advise and assist AD1 with the transition until February 2024, ensuring a seamless transition to Perkinson. The transition will also support Perkison in securing partnerships and a channel strategy to facilitate the continued growth of Art of Mentoring.

Perkinson has been CFO and company secretary of AD1 since April 2023. He is an experienced CFO and COO in technology businesses, driving efficiencies, profitability, and has significant managerial experience across mergers and acquisitions, due diligence and implementation activities, delivering scale into those businesses. Perkinson will continue with implementing the cost savings initiatives and seek further organic growth opportunities in North America and Australia while also identifying strategic acquisition opportunity within the learning and development business.

Chairman Nicholas Smedley said, “Kavenagh has provided great leadership over the last three years, leading the business through a transformative period and positioning the business for further growth in the HR technology space. The cost reductions implemented over the last nine months position AD1 for a strong FY24 as the business intends to deliver operating profit and become cash flow positive in the second half of FY 2024.”

“I am very please to welcome Perkinson into the CEO role, he will be instrumental in continuing to deliver cost efficiencies, while progressing AD1 towards profitability,” Smedley added. “Todd brings ASX (Australian Stock Exchange) executive experience, plus an understanding of the AD1 business, his expertise and involvement in turnaround strategies and commercial background is a great fit for the business to grow to the next stage.”

Last month, AD1 Holdings (AD1:AU) reported annual group revenue of AUD 6.4 million (USD 4.1 million), an increase of 7% on the prior corresponding period of FY21.