Somogyi to quit CPI for role on APRA

CPI is looking for an industry insider, an executive with ‘direct industry experience,’ as the publicly listed company signals, that following a massive product realignment and cost cutting, it is ready to grow by acquisition as well as organically.

Steve Somogyi will take up a new appointment on July 1 as one of the three-man APRA executive set up by the Federal Government to oversee the insurance industry in the wake of the HIH debacle. He will stay on deck at CPI at least until his replacement is announced.

His departure continues a period of turmoil for CPI following a burst of stellar growth when it changed from being a paper merchant to a full service supplier by acquiring the graphic arts equipment and supply business of Sicpa. Somogyi was brought in 18 months ago to replace Ian Harry as the company struggled to digest the business with falling revenues and a plunging share price.

In his time in the top job he put a knife through the organization, selling the loss-making CPI Trading unit, reducing debt and costs, and revamping its list of suppliers. This last resulted in the departure of two high-profile product lines; FujiFilm prepress and the Hostmann-Steinberg ink agencies.

FujiFilm departed amid some controversy earlier this year to a newly formed agent, AGS, led by former staffer Peter Carrigan. It was a classic case of, did it jump or was it pushed? Both sides are sticking to differing accounts.

Gerry van Wyngen, Chairman of CPI stated that the changes carried through by Somogyi and the CPI management team now place CPI in a sound position for the future.

“With a much stronger balance sheet, the board of directors and Mr Somogyi mutually agree there are now opportunities to undertake a more substantial push into the Australasian graphic arts market. The belief is that this would be best achieved under the leadership of a new managing director with a strong industry background.”

Both internal and external candidates will be considered for the position, which is one of the most strategic jobs in the industry. When CPI’s paper merchanting business is taken into account the company is by far the largest supplier to the industry, occupying the unique position of been able to supply all consumables and equipment.

According to the CPI statement, the changes effected over the past18 months have ‘resulted in a significantly lower business risk profile in a very challenging industry environment. As a result, some gains have been made in greater market penetration. The foundations are now in place for an industry specialist to drive growth both organically and by acquisition.’