Smartgroup CEO set to depart
Stock
Smartgroup (SIQ) $9.58 as at 18/11/2019
Event
Smart Group, a provider of salary packaging, fleet management and a range of other employee management services, has seen its shares tumble on news the CEO Deven Billimoria would be leaving the company after 19 years with the group. The company confirmed today that Deven would exit the role in February next year but remain on the payroll as an advisor for another 12 months with another long standing employee, CFO Tim Looi, taking over the top job.
Deven’s 17 years in the corner office includes leading Smart Group’s IPO in 2014 and subsequently taking the stock into the ASX200 two years after . Shares have rallied from from sub $1.50 to a peak of $13.35 in 2018. Deven has accumulated shares over his time in charge and currently owns 3.3m, or 2.5% of the company making him the 6th largest shareholder.
The announcement also came with FY19 NPATA guidance of circa $81m for the December year end which is bang in line with consensus expectations. The market’s concern here is not the company’s performance, or the replacement given Looi has spent 10years working with Deven, but the overhang of stock - Deven unlikely to hold shares, or at least such a significant portion, after his departure.
Smartgroup (SIQ) Chart
Market Matters Take/Outlook
