Wisetech Global shares slump amid board-founder feud, mixed guidance

Published 24/02/2025, 01:20

Investing.com-- Wisetech Global Ltd (ASX:WTC) shares fell sharply on Monday after most of the Australian software company’s board quit over a feud with founder Richard White, while it also presented a weak outlook for revenue.

Wisetech’s shares slid as much as 22% to A$94.0, their lowest since August 2024. The stock was the worst performer on the ASX 200, which fell 0.5%. 

The company said four independent non-executive directors, including Chairman Richard Dammery, had stepped down from the board, citing “intractable differences” with founder and major shareholder White. The four will resign after Wisetech reports its interim results on Wednesday. 

White will present the results as “Founder and Founding CEO,” Wisetech said, while Andrew Cartledge and Caroline Pham will be present as Interim CEO and Interim CFO, respectively. 

White was ousted as CEO in October 2024- a position he had held for 30 years- amid a growing scandal over several allegations of misconduct. But Wisetech had attempted to retain White as a consultant, given that he holds a 37% stake in the company- a sale of which could decimate its market capitalization.

While White was cleared of some allegations of misconduct in a board review, recent reports showed new allegations of misconduct against the tech founder. 

Additionally, Wisetech’s shares were also dented by the company stating that its annual revenue will be at the bottom end of its A$1.2-A$1.3 billion guidance range, due to delays in rolling out new products. But the company’s EBIDTA margin rate will come in at the upper end of its 50% to 51% guidance due to an ongoing efficiency program.

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