Dreamworld crowd numbers on the improve: chairman

The company had a ­tumultuous year in the wake of the fatal accident at Queensland theme park Dreamworld in October 2016. After board room ructions, corporate raider Dr Weiss and US executive Brad Richmond were invited to joined the board.

Dr Weiss told the meeting the board was now behaving in a collegiate way and Ardent’s acting chief executive Geoff Richardson cast a hopeful eye towards the 2018 Commonwealth Games to be held on the Gold Coast that could spur Dreamworld’s recovery.

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Most attention was on Dr Weiss, who talked up the outlook for the company, despite acknowledging its full-year 2017 results and the multiple board changes were “clearly disappointing”.

Ardent is now searching for a new chief executive to replace Simon Kelly. It was also questioned about previous boss Deborah Thomas, whom Dr Weiss said remained as a consultant ahead of a coronial inquiry into the ­accident.

In the most substantive takeaway from the meeting, Dr Weiss indicated that once its operations were again firing, Ardent appeared to be headed for a split of its operations, under which US business Main Event could be spun off in that market.

We’d hope to be able to announce the return of some former rides and some attractions and we’re very committed to reinvigorating Dreamworld and to making a material investment back into the park to refresh and reinvigorate the offer

“The immediate focus is on ­remediating that business and hopefully materially improving performance,” Dr Weiss said.

He said that when Ariadne and its associates ran their successful proxy campaign it had tabled a plan to restore $1 billion of value to business and this remained the longer-term strategy.

“Once the businesses have been remediated, then clearly optionality will present itself in terms of are the businesses appropriately housed moving forward,” he said.

Dr Weiss believes the company’s Queensland theme park is on the improve. “Patronage is still subdued but its performance is starting to come back,” he said.

“We’d hope to be able to announce the return of some former rides and some attractions and we’re very committed to reinvigorating Dreamworld and to making a material investment back into the park to refresh and reinvigorate the offer.”

Dr Weiss said Ardent was weighing what to do with surplus land around Dreamworld.

The election of Dr Weiss as chairman of Ardent drew a 8.7% protest vote, which he attributed to his heavy load of directorships. But it also rekindled memories of the proxy battle.

The immediate focus is on ­remediating that business and hopefully materially improving performance

The largest shareholder, fund manager Ausbil Dexia, had flagged it would vote against his appointment during that fight and former Ardent Leisure chairman, Neil Balnaves, on Monday had representatives of his foundation asking pointed questions of the board.

Dr Weiss was asked whether Ardent was insured against losses incurred after the accident, in which four parkgoers were killed.

The issue was “highly sensitive” and Dr Weiss declined to comment further. Two questioners, representing interests associated with the Balnaves Foundation, also queried the level of directors fees, although Dr Weiss is not taking payment this year.

Dr Weiss said after the meeting that he had received support from a significant proportion of shareholders and the votes showed they supported his “perceived ability” to turn Ardent around.

Analyst Roger Colman of CCZ Equities questioned the need for a new chief executive to oversee the local and US operations, but Dr Weiss said he would not become an executive chairman and the company’s focus was on finding a new chief and a new head of the US-based Main Event business.

This article originally appeared on www.theaustralian.com.au/property.