Summerset boss Julian Cook stepping down, to be replaced by deputy Scott Scoullar

Monday, 9 November 2020

Julian Cook, chief executive of Summerset retirement villages has announced his retirement. Cook has headed the firm for seven years, and worked there for 10 years.

Summerset chief executive Julian Cook has announced his stepping down after seven years at the helm of the listed retirement village company.

Cook will be replaced by the deputy chief executive and chief financial officer, Scott Scoullar, who will take over from March next year.

Summerset shares were trading at $10.50 on Friday.

Cook has worked for Summerset since 2010, in which time the company has become the second largest in New Zealand, with more than 5700 residents.

Retirement village company Summerset deputy chief executive Scott Scoullar will take over the top job in March 2021.

* Summerset lifts wage and penal rates to attract and keep nursing and care staff

* Two big retirement villages planned for Rangiora and Blenheim costing $250m-plus

There are 31 Summerset villages across the country with 11 more in development, including two in Victoria, Australia. Once completed these will bring the number of villages to 42.

“I am very proud of what we deliver to residents, staff, and our communities. I will greatly miss the people who work with us and the residents who live in our villages,” he said.

Since listing in 2011, the Summerset’s market value has increased from $300 million to $2.4 billion, while its assets had increased form $540m to $3.4b, Cook said.

“Summerset has come through the Covid-19 lockdowns and is performing well. I am very confident of its ongoing success. We are expecting our first delivery of units in Australia next year and Summerset has an exciting future ahead,” he said.

Chairman Rob Campbell said Cook had been and “outstanding chief executive”.

Cook was involved in Summerset’s innitial public offering, grown the business and improved services, while also establishing retirement villages in Victoria, Campbell said.

However, the Covid-19’s impact on property values had resulted in Summerset’s units being marked down by $14.7m. That sent its profits plummeting to $1m for the six months to June 30, compared to $92.6m last year.

Cook sold $1.5m worth of shares within days of the company receiving $8.8m in Government wage subsidies earlier this year, but said his personal shares were a completely separate issue.

Cook, the board and the executive had taken a 20 per cent pay cut while around 260 staff were moved to a four-day week and a corresponding pay cut.

Scoullar said Summerst was “well positioned to grow in New Zealand, with enough land banked to allow us to double in size. Our expansion into Australia in 2021 is an exciting direction for a Kiwi-born company”.