Christian quits ups and downs of Advantage

By PETER GRIFFIN IT writer

Just as beleaguered technology company Advantage Group is beginning to clear away the last of the tech wreck rubble, its long-term chairman Evan Christian is calling it a day.

Christian is vacating the position he has held since February 1998 to concentrate on a handful of private investments, one of which is in the IT sector.

He remains a shareholder in Advantage, holding more than 8 per cent of its shares, worth $2.3 million at the present share price of around 33c. He will keep a seat on Advantage's board.

David Wolfenden, former managing director of Countrywide Bank and Christian's deputy at Advantage for the past 12 months, will become chairman.

Under Christian's leadership Advantage went from, in his own words, "a small, rundown eftpos business losing $500,000 a month" to become an acquisition-hungry web company that ultimately paid the price for its expansion, but survived by reverting to its traditional business.

Christian was chairman when Advantage bought up big in web services and was then forced to restructure and wear losses in excess of $60 million, largely due to goodwill writedowns.

"We had to make some hard calls after we made those acquisitions. The acquisitions maybe in hindsight were overpriced," he said.

"[But] the company's probably in the best shape it's ever been in at the moment. We're profitable, we're cashflow positive, the business is going well."

Last year, Christian was criticised for the large consulting fees he received for providing advice to the company.

Many analysts thought Christian's falling out with investment partner and fellow Advantage shareholder Eric Watson would accelerate his departure as chairman.

Watson offloaded 11.5 million Advantage shares in May, selling most of his shares to the company's co-founder Nick Gordan.

Christian is reluctant to say what soured his relationship with Watson.

"We both decided that [Eric] has a different business philosophy than I do and we decided we'd go our separate ways a couple of years ago.

"Since then I haven't done any deals with him." Advantage's share price during Christian's reign went from 60c to $5.65 then back down again.

The present share price is one thing he wants to see improved.

"The only thing I'm not 100 per cent happy about is where the share price is at. That's a function of international markets I don't have much control over."