Class Limited Shares Decline Following The Surprise Exit Of CEO Mr. Kevin Bungard

class ltd

On 24 October 2018, Class Limited (ASX: CL1) announced that Mr. Kevin Bungard is stepping down from his role of CEO by mutual agreement with the board. Following this news, the share price of the company declined by 6.944 percent as on 25 October 2018.

Mr. Kevin Bungard has been CEO since April 2014 and led the company through its successful listing on the ASX in December 2015. The company’s board and Mr. Bungard have mutually agreed that a new leadership is required for the next stage of the company’s growth. The Board has started the search for the new CEO and it will start evaluating the potential internal successors. It has been decided that the current CFO Mr. Glenn Day will take on the role as an acting CEO until the new CEO is appointed. Mr. Bungard will remain available to the company for consultation during the balance of his 3 months’ notice period. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

The company recently held its Annual General Meeting on 15 October 2018 in which the company reported strong revenue growth and profit margins in FY 2018. The operating revenue increased by 18 percent to $34 million in FY 2018 compared to the prior corresponding year. The EBITDA of the company increased by 14 percent to $15.9 million in FY 2018. The NPAT of the company increased by 9 percent to $8.7 million in FY 2018 as compared to last year. The earnings per share of the company witnessed a growth of 8 percent in FY 2018. In FY 2018, the company’s portfolio grew by 83 percent by adding 2,695 new accounts. The company believes that there is a large opportunity in the portfolio administration space and it is investing heavily in the product, including 3 developing deeper integrations with financial planning tools and enhancements for multidisciplinary practices. In FY 2018, the company significantly invested in a new team led by Mr. Glenn Poynton, to grow partner revenue beyond the 4 percent that it currently contributes. The company is working to increase revenue share from partner products and expanding the partner network. The company is also actively reviewing opportunities for alliances (including M&A) in adjacent markets. The company is having a clear strategy to deliver long-term success and remain positive about the growth of the business moving forward. The company is focused on growing its market share in both cloud-based SMSF (Self-Managed Super Fund) and non-SMSF wealth accounting software. With desktop and excel users migrating to cloud and increased switching from other cloud products the outlook for SMSF growth in FY 2019 is very positive.

In the last six months, the share price of the company increased by 0.92 percent as on 24 October 2018, traded at a PE level of 29.230x. CL1’s shares traded at $2.010 with a market capitalization of $254.15 million as on 25 October 2018 (AEST 12:38 PM).


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