Australian real estate business McGrath is in crisis-mode after its entire board, including CEO, resigned following a profit warning. Founder John McGrath will take over as interim CEO as the company begins to rebuild with a new approach.
- Publicly-listed company (ASX) McGrath issues another profit warning for 2018
- After a dismal two years public, CEO Cameron Judson and the entire board are resigning
- McGrath shares have fallen from $2.10 to $0.50 in the past two years
- John McGrath will apply a new approach to business as the interim CEO
Stockholders for Australian-based real estate business McGrath are in for another long year. The company’s stock price has plummeted to less than one-fourth of its original price in the past two years, are more losses are expected.
McGrath just issued a profit warning for the coming year after a difficult start on the exchange. The company announced they expect full-year earnings – before interest, tax, depreciation, and amortization – of between $5.8 and $6.8 million. These projections fall way short of analyst expectations of $16.6 million.
The current CEO and entire board resigned after the profit warning. The company announced John McGrath will take over as interim CEO.
“Like all shareholders I am very disappointed with the performance of the company over the last two years,” John McGrath said.
“Now is the time for a new approach. Despite the challenges we have endured since listing, McGrath remains one of the best real estate businesses in Australia with outstanding talent throughout the company.”
“Our investors and team have exhibited great patience and loyalty during this difficult time and I intend to work very hard to repay them for their confidence in the company,” John McGrath concluded.