Shares in Flexigroup (FXL), the consumer and commercial lease company, fell in yesterday’s upbeat market after the company revealed the surprise departure of CEO Tarek Robbiati.
The shares fell 7%, or 24 cents to $3.19, as the company revealed it had started a search to replace its CEO of just two and a half years.
Mr Robbiatri is widely thought to have revamped Flexigroup’s performance in the time he was at the helm, which could explain the sharp fall in the share price.
The former head of Telstra International Mr Robbiati will leave in the second half of 2015 to return overseas.
FXL 1Y – CEO, investors exit FlexiGroup
Mr Robbiati said he felt it was time to move on with Flexigroup’s “transformation" now on track.
This ‘transformation‘ has included investments in new "no interest" retail store credit cards and investing in moving its consumer leasing business online.
Chairman Chris Beare described Mr Robbiati as an extremely capable CEO.
“Tarek has done an excellent job in transforming FlexiGroup, putting it on a long-term sustainable footing and preparing it for the digital finance future,” Mr Beare said in yesterday’s statement.
December half year cash profit jumped 9% to $42.5 million, with all its divisions recording growth.
That saw FlexiGroup’s share price jump more than 14% to $3.49 as it reported statutory profits were also up 11% to $38.5 million.
Mr Robbiati confirmed full year 2015 guidance of between $90 and $91 million. There was no update yesterday.
