Firstfolio's new chairman has defended the forced resignation of chief executive Mark Forsyth, and lamented the company's poor stock performance.
Forsyth was pushed to resign from the company this month, with a spokesperson telling Australian Broker he was "not the right guy" for Firstfolio's future strategy.
Now chairman Eric Dodd has told News Ltd that Forsyth did not have the necessary skills to oversee the day-to-day operations of the finance company.
"The skill set of the CEO was not right. His was an entrepreneurial background, not an industry background," Dodd said.
Forsyth oversaw a period of rapid expansion via acquisitions, with the company buying Calibre Financial Services, Club Financial Services and Apple Home Loans, but Dodd told The Australian Firstfolio now has to look to the day-to-day operations of its purchases.
"The key thing now is for the company to execute on what it has bought. We have all the pieces we need," he said.
The rapid mergers and acquisitions saw Firstfolio shed profits, with its half-year net profit falling by 86% for the six months ending 31 December. The company's share price has also suffered, down from more than 11 cents in 2003 to just over two cents as of yesterday.
"The company is trading well below where it should be. It is misunderstood," Dodd told News Ltd.
Forsyth 'not the right guy' for Firstfolio's future