Catapult Group International Limited (ASX: CAT), engaged in offering athlete management and sports performance solutions, announced the resignation of the CEO, Mr Joe Powell. In the next phase of Company’s growth, the company has agreed with Mr Powell that it is the correct time when a new CEO can lead Catapult.
Now, Mr Joe Powell will serve a notice period of 6 months as per the contract and will work as per the requirement of the board. At the same point of time, the board has appointed a subcommittee who is currently taking the responsibility of the global executive research process for the new CEO.
Dr Adir Shiffman, who is the Executive Chairman of Catapult Group stated that the company requires a CEO who has strong strategic capabilities, superior expertise in a global enterprise, and a commitment to creating shareholder value in the sports technology market.
For the business continuity and smooth transition, Mr Powell will continue to report to the Executive Chairman, Dr Adir Shiffman, who will increase his day-to-day participation in the company.
Mr Shaun Holthouse, who is the Co-Founder, Executive Director and former CEO of CAT, on request of the board agreed to increase his executive commitments till the company gets its new CEO.
The company thanked Mr Joe Powell and wished him good luck for his future.
As per the H1 FY19 preliminary results, there was a YOY increase in the Elite Core Revenue by 29% (CC 23%) which is above the FY2019 guidance range. The underlying core EBITDA was $3.5 million. The annualized recurring revenue (ARR) during the period was $57.4 million.
The reason for the strong revenue and EBITDA growth in the core elite business was the result of a low churn rate of 3.5% of elite wearables subscription units not being renewed. The company acquired new clients over the past six months. The total clients by the end of the period were 2,100. The substantial earnings were also the result of expense control and operating leverage.
The overall unit sales in the new category during the period increased by 114%. The revenue generated was more than double to $2.7 million.
CAT’s financial position remains strong due to the accelerating growth of the core elite business. By the end of the half-year period on 31 December 2018, there was a decrease in the cash and cash equivalent by $3.5 million as the company made the repayment of the loan. The net cash available with CAT by the end of 31 December 2018 was $27.1 million.
Since the inception of CAT on ASX, the stock gave a positive performance of 45.36%. However, in last one year, the stock gave a negative return of 54.09%.
On 7 February 2019, CAT tumbled and closed at A$0.605, down by 22.93% as compared to the previous trading day’s closing price. Today, the stock is trading at A$0.635 (as at 2:46 PM AEST, 8 February 2019), up by 4.96%, with a market capitalization of A$115.49 million and approximately 190.9 million outstanding shares.
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