Shares in consumer credit provider FlexiGroup Limited (ASX: FXL) fell up to 15% today after the group announced the unexpected resignation of its CEO Symon Brewis-Weston who's due to clear his desk by September 3 2018.
FlexiGroup has named a replacement in Rebecca James as an experienced executive who'll earn $700,000 per year plus multiple benefits and share scheme incentives when she assumes the top job on October 15, 2018. The new starter is currently at online lending start-up Prospa and has previous work experience at industry super fund owned ME Bank.
FlexiGroup's chief financial officer will take temporary charge of the business while the CEO's role is vacant and today's steep share price falls are due to the unexpected resignation of the current CEO.
Investors don't like uncertainty or instability and FlexiGroup's mixed track record is leaving them nervous despite the group also reaffirming profit guidance for FY 2018 today.
The stock has collapsed in half to $1.98 from highs above $4 in 2018 as profits at its core consumer lending business fall.
This comes at the same time as interest free 'buy now, pay later' startup Afterpay Touch Group Ltd (ASX: APT) rockets high on ballistic consumer credit and sales volume growth.
Notably, FlexiGroup operates plenty of products similar to this such as Oxipay and Certegy but management struggled to deliver on their potential with Oxipay having an embarrassing number of retail clients compared to AfterPay.
How the likes of startup AfterPay managed to so comprehensively thump FlexiGroup is something its departing CEO may be left to chew on…
