Adacel Technologies Limited (ASX: ADA), a developer of advanced simulation and control systems for aviation and defence, announced that it had accepted the resignation of the Chief Executive Officer, Mr Gary Pearson with effect from 31 March 2019.
Peter Landos who was the chairman to the board will also be stepping down as the Non-Executive Chairman effective 31 March 2019 so that he may spend more time as the Chief Operating Officer of the Thorney Investment Group.
Mr Gary Pearson had worked at the company for 19 years, and since October 2015, he was the Chief Executive Officer. He had played multiple roles in the company and had contributed across various key areas. The board highly appreciates his contribution to the organization.
Now, the board will immediately be looking for a suitable candidate who will take up the position of CEO. The search will be both internally as well as externally, and it is expected that the process will take next four to six months. Until the permanent replacement of Mr Gary Pearson is announced, Mr Daniel Verret will be the Chief Financial Officer, Mr Kevin Pickett will be the Vice President of Operations, and Mr Brian Hennessey will be leading as Vice President of the Business Development.
Mr Peter Landos, on the other hand, intends to remain on the Board as the non-executive director. He was one of the board members since 2009, and since 2012, he took the position of Chairman. Under the chairmanship of Mr Peter Landos, since 2014, the company was consistently profitable. He also encouraged ADA to make regular payment of ordinary as well as special dividends to all its shareholders.
Michael McConnell, who was appointed to the board of Directors in May 2017 is now appointed as the Non-Executive Chairman.
As per the 1H FY2019 results of the company, net profit after tax reported a fall of 57.10% from A$4713K in 1H FY2018 to A$2249K in 1H FY2019. EPS fell from 4.3 cents in 1H FY2018 per share to 1.9 cents per share in 1H FY2019. The company which was paying a dividend of 2 cents per share in 1H FY2018 declared a dividend of 1 cent per share in 1H FY2019. The net cash and cash equivalent by the end of 1H FY2019 were A$3.144 million.
On 30 January 2019, the company was awarded a contract to continue providing its services in support of the air forceâs ATC Tower Simulator System program by United States Air Force (USAF).
By the end of the trading session on 26 March 2019, the share price of ADA tumbled by 10.778% to A$0.745. The company has a market capitalization of A$63.96 million and around 76.6 million outstanding shares.
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