On December 10, 2018, IOOF Holdings Limited (ASX: IFL) has made an announcement by issuing the press release about the changes which have been done with respect to the top management. As per the press release which was issued, the Managing Director, as well as Chairman of the company, would be leaving their positions. However, the press release also stated the names of the executives who would be taking over the responsibilities of the Managing Director as well as CEO. The Acting CEO would be Mr. Renato Mota while Mr. Allan Griffiths would be the Acting Chairman of the company. The executives who have stepped aside would now be focusing on the APRA or Australian Prudential Regulation Authority’s actions.
Even though the company’s CFO or Chief Financial Officer named David Coulter, the general counsel named Gary Riordan as well as the Company’s Secretary named Paul Vine would be retaining their present positions, they won’t be having any responsibilities with respect to IOOF trustee companies’ management. However, also, they won’t be having any dealings with the Australian Prudential Regulation Authority. The press release which was issued also contained the comments from the Acting Chairman. As per Mr. Griffiths, the decision of the Christopher Kelaher and George Venardos of stepping aside from their position is the reasonable one. He also stated that the actions which have been brought by the regulatory body need to be defended. He also added that they would start looking for the additional non-executive director and that the actions brought by the regulatory body are serious in its nature.
Mr. Griffiths was seen comforting the stakeholders of the company as he stated that the governance issues would be resolved. He, as well as Mr. Renato Mota, would be closely working with Australian Prudential Regulatory Authority. A glimpse was also given by Mr. Griffiths of the FY 2018 results. He stated that in AGM or Annual General Meeting, it was mentioned that the business is presently in a robust position. In FY 2018, the company managed to post Net Profit After Tax or NPAT (underlying) amounting to $191.4 million which implies the growth of 13% on the YoY basis.
In the press release, it was also mentioned that the company would also be working towards the initiatives which are with the Australia Prudential Regulatory Authority and they would also extend the support to the APRA Regulated Entities or ARE in regard to the process.
Let us quickly understand the stock’s performance. The stock of IOOF Holdings closed the day on the negative note. The stock price of the company closes at A$4.280 per share which implies that the company witnessed the fall of A$0.320 per share or 6.957%. The market capitalization of IOOF Holdings Limited amounted to $1.61 billion. The company has an annual dividend yield of 11.74%. In the past three months’ time frame, the company has delivered the return of -43.21% while in the past one month the return was -35.30%.