MONTHS after he took his cashed-up pub owning trust to the public, Tom Hedley has stepped down as chief executive officer of Hedley Leisure and Gaming.

In a move that is seen as a bid to encourage confidence among institutional investors, Mr Hedley announced his resignation yesterday, saying he wanted to devote more time to his private businesses, Hedley Private Group.

He will remain a non-executive director of the ASX-listed HLG and is retaining his substantial majority shareholding.

The company's chief operating officer, Peter Armstrong, becomes the new CEO in a move that was foreshadowed at the company's annual meeting in November.

Mr Armstrong joined HLG from Coles where he was general manager of the liquor division for more than four years.
In that role, he was responsible for leasing the biggest share of HLG's 100-plus pubs and bottleshops.

While Mr Hedley did not return calls yesterday, Mr Armstrong said Mr Hedley would remain "a very important member of the HLG team".

"Tom has very substantial business interests and is a very big employer in Far North Queensland and he wants to focus his time on those areas," Mr Armstrong said.

"When he (Mr Hedley) asked me to join HLG he obviously had a plan in mind and this move is consistent with the strategy announced at the annual meeting. This is a very positive step because it means there will be a 100 per cent focus on the HLG business from the executive management."

While HLG has been battered in the sharemarket, along with every other property trust, it has delivered what it promised in its prospectus in terms of dividends and profit.

Cairns stockbroker Steve Edwards, from Bell Potter Securities, said the move would likely be welcomed by institutional investors, as well as the company's major financier ANZ.

"With Mr Armstrong's experience in the industry and his knowledge of HLG from day one, his appointment as chief executive is likely to be seen as elevating it to a more professionally run company," Mr Edwards said.

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