Elders chief executive in sudden exit

The struggling business is now on the lookout for a successor.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The board of rural services company Elders (ASX: ELD) has announced that its chief executive officer, Malcolm Jackman, is to leave the company with immediate effect. The company delivered a spectacular half-a-billion-dollar loss in the last financial year, involving $442.2 million of writedowns and other costs, as it processed the sale of its underperforming forestry and automotive businesses. The normalised or operating loss of $63 million was its worst on record and equally disappointing to long-suffering investors.

With no permanent successor to Jackman identified, the company put a brave face on his departure saying now was an appropriate time for Jackman to step down. The company's value crashed during Jackman's five-year tenure, with the results of a restructuring and a turn-around program yet to take effect.

The stated goal of the restructure is to return it to being a pure-play agribusiness, that supplies rural Australia with its business needs. Elders main rival in this space is Ruralco Holdings (ASX: RHL), last week it reported an annual net profit of $8.7 million.

Foolish takeaway

Net debt at year-end was $255.2 million and the business will need to rely on more than just earnings improvement to get itself back on track. The first priority must be to find a permanent chief executive and investors will be keen for this to happen sooner rather than later. Unsurprisingly, speculation on this business is not currently recommended.

Motley Fool contributor Tom Richardson does not own shares in any of the companies mentioned in this article.   

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »