Changing of Home guard

THE two top positions at Home Building Society are due to change this year, with long-serving chairman Bernard Wright announcing that he would retire.

This followed the announcement earlier this year that chief executive Jim Freemantle would retire at the end of June. Home has also announced the successful completion of a $6.3 million rights issue.

The retirement of Mr Wright will be a major milestone, since he has been a director since 1980 and chairman since 1987.

Current deputy chairman Brian Sierakowski said he would not be a candidate for chairman.

“It would require a lot of time and I just don’t have that time,” said Mr Sierakowski, who works full time as a barrister and solicitor.

He added that the six-member board wanted to bring in new members who could complement the skills of the current directors.

The new chairman will be elected by the board of directors following Home’s AGM in October.

Mr Freemantle, who has been chief executive for eight years, said an announcement on his successor was “imminent”.

He intended to remain active in the business community, most likely through director and consulting roles.

Mr Freemantle said the rights issue was “almost fully subscribed” and therefore the number of shares to be allocated under the shortfall arrangement would be very limited.

“It’s pleasing that everyone thought the rights were worth taking up,” he said.

The rights issue was designed to bolster Home’s capital base in light of the unexpectedly strong growth in housing lending and land sales.

Stockbroker Paterson Ord Minnett, which managed the rights issue, has forecast a net profit of $2.4 million for the year ended June 2003, up from $2.2 million in the prior year.

But the increase in Home’s capital base meant that earnings per share were expected to fall to 16.2 cents from 18.5 cents. The forecast dividend was 15 cents per share.