Global Health Ltd (ASX:GLH) has made a number of leadership changes that come into effect today.
“The company’s Australian operations will be restructured commencing immediately with the focus on putting the right people in place, in both executive and leadership roles that fully embrace Global Health’s ambition to continue to be a major force in providing digital health solutions to the Australian operations and the new opportunities to grow the business in the very large addressable markets in Asia, Europe, the Middle East, Africa and the Caribbean regions,” said chairman Steven Pynt.
Restructure
CEO Michael Davies will leave his role effective immediately. He has led Global Health during a very challenging period of a global pandemic and with global and domestic challenges faced by the organisation, the company says it is necessary to restructure the organisation for its ongoing sustainability and to continue its growth path.
The board thanked Davies for his commitment and dedication during this challenging period.
Following a capital raise completed in August 2021, the company revised and scaled up the organisational structure in anticipation of growth, driven by a new sales-focused leadership team.
Due to the delays in new revenue, adverse global conditions and escalating staff salary pressures, the board thinks that now is the appropriate time for a change in leadership and the implementation of appropriate cost efficiencies to improve margins.
Global Health’s vision is to grow the business both domestically and internationally, along with an M&A focus over the next two years.
Founder to step into group MD role
Mathew Cherian, the founder, major shareholder and executive director of Global Health, has been appointed group managing director and tasked with implementing the necessary restructure and cost efficiencies.
Cherian has worked closely with the Global Health executive team for many years and over the past 16 months led the move into Asia and the Pacific, resulting in key appointments in the region.
The board believes that Cherian has the insights and skill set – having a close working knowledge of the relevant markets and an experienced team in place – to oversee Global Health’s future.
Chairman Steven Pynt said: “We welcome Mathew Cherian, founder of Global Health back as group managing director.
“Mathew’s immediate priority will be driving our commercial performance in all target markets to improve margins and offset cost pressures, while accelerating our cost reduction and operational efficiency initiatives.
Uncertain market conditions
“He will also focus on our capital deployment across the group to ensure efficiency and effectiveness in the current operating environment to deliver the best returns for shareholders.
“The board is confident that Mathew’s long-term commitment and significant commercial, strategic and operational experience as founder of Global Health makes him the right person and ideally placed to lead the company through the current uncertain market conditions into 2023.
“Changing market dynamics in terms of skilled labour costs, inflationary and client budgetary pressures means that Global Health needs to focus on driving efficiencies and costs to improve operating margins.
“Mathew’s track record of over 30 years in the healthcare software business means that he is well placed to achieve this outcome.”