Simon Kelly's tenure as CEO at the theme park operator lasted just six months. Credit:Ben Rushton Ardent has started a search for a replacement for Mr Kelly and the search for the US-based Main Event chief executive is ongoing. The new-look Ardent board, with Dr Weiss and US-based Brad Richmond, remain unified in the strategy to recover the performance of the group, as outlined when they were appointed. One suggestion was that Dr Weiss could become an executive chairman and have both CEO's report directly to him in order to have a more "hands on" running of the group. Over time, the Australian businesses could be sold into a separate entity leaving Ardent to focus on the US Main Event business, which has been identified as the "growth engine".

Investor reaction was swift to the news of Mr Kelly's resignation, falling 2.2 per cent to close at $1.83. According to Macquarie Securities' analyst Shaun Weick, while the length of tenure [of Mr Kelly] is clearly a concern, it implies a potential disconnect at the board/senior executive level. "And broader issues may be afoot in terms of the strategic direction of the business going forward, that is a break-up scenario, although the board were noted as "remaining committed to the previously announced strategic initiatives," Mr Weick said in a note to clients. "Further disruption at senior executive / board level is clearly concerning, raising questions as to the strategic outlook for the business. Trading conditions remain challenging. "The underperformance of recently added Main Event centres requires pause for thought on the future outlook. We would require evidence of improved operational momentum to get more positive, particularly in light of valuation, being 29 times price earnings."

Public battle Dr Weiss and directors of his investment company Ariadne have engaged in a very public battle since February with the Ardent board, after snaring a 10 per cent stake, and eventually gaining two board seats and then the chairmanship in late September. During that process, Dr Weiss said he had a plan to improve the operational and financial performance of each of Ardent's business units, particularly its US arm Main Event, and establish capital discipline and a focus on return on capital. "On any objective basis, Ardent's operational and financial results, coupled with its governance issues over the last few years, have been poor," Dr Weiss said at the time. Dr Weiss also spoke of plans to redevelop the surplus land around the Dreamworld theme park on the Gold Coast, which could include a mixed use residential and possibly hotel project.

The latest leadership turmoil comes just over a year since the tragic Thunder River Rapids ride incident at Dreamworld, which cost the lives of four people. A coronial enquiry of the incident is yet to start. Mr Kelly, who replaced the previous chief executive Deborah Thomas in June, has had a tumultuous time during his tenure as chief executive amid the board stoush with Ariadne, more earnings declines at Dreamworld and the impact of Hurricane Harvey in late August, which led to the temporary closure of some of Ardent's Main Event venues in Texas. Informing investors of Mr Kelly's sudden departure, Ardent said finance chief Geoff Richardson would act as interim chief executive while it searches for a new chief executive. "The board of directors is disappointed with Simon's resignation and would like to thank him for his contribution to the group and wish him well in the future," Mr Weiss said in a statement to the ASX. Mr Kelly didn't give a reason for his departure, saying it had been "a pleasure to lead the group".

"I remain very positive about the potential of the group's businesses," the departing executive said in the same statement. Updating on its business performance, Ardent said it was trading "broadly in line with expectations" for its core EBITDA for financial year 2018. Business at Dreamworld remains challenged after last year's fatal incident, it said, "albeit within expectations, with the business trading above break even ahead of the peak trading season over the summer months". Earnings at the company' bowling and entertainment business are tracking 20 per cent higher from a year earlier. Revenues at some newly-opened centres under the Main Event business arm remain also challenged.

Ardent's annual general shareholder meeting in on Monday, November 20 in Sydney.