Shares in real estate agency McGrath fell hard following reports about founder John McGrath.
McGrath shares fell by as much as 8%. At the close, they were down 6.3% to $0.44. The company floated in December 2015 at $2.10.
The Sydney Morning Herald reported on a $16.2 million gambling debt with betting company William Hill Australia run by Tom Waterhouse.
McGrath reportedly told staff the report was “rubbish” and “ridiculous”.
The first real estate agency to list on the ASX is heading for a loss in the first half of 2018 following shrinking listings, fewer Chinese buyers and the exodus of some high performing agents.
The company says it will post a loss of $50,000 for the six months when one off items are included. Excluding those, the EBITDA (Earnings before interest, taxes, depreciation, and amortisation) for the half year to December will be $1.63 million.
The agency founder is about to take on a more hands on role at the agency with CEO Cameron Judson and Head of Corporate Services and Company Secretary, Morgan Sloper, leaving the company.
Chairman Cass O’Connor and current Non-Executive Directors Elizabeth Crouch and Cath Rogers are also leaving following an “orderly transition” period, sometime after the release of the company’s Interim Results later this month.