The high-profile CEO of OFX has quit and now the stock is getting hammered

Shares in OFX, formerly OzForex, dropped hard after the Australian foreign exchange group issued a profit warning and ditched its CEO, Richard Kimber.

A short time time ago, they were down 20% to $1.33 and a long way from a 12-month high of $3.15

Kimber has been replaced as CEO after just 18 months in the role by Skander Malcolm, formerly of Westpac and more lately president and CEO, Australia and New Zealand, for GE Capita.

“Richard Kimber has achieved a great deal in setting in place a growth strategy and investing in our technology and people,” says OFX chairman Steven Sargent.

“However, delivery of the strategy has not been to the board’s or shareholders’ expectations.”

The international money transfer company says Brexit, the impending departure of the UK from the European Union, will mean fee and commission income for 2017 will be $3 million lower than anticipated.

In the December quarter, average transaction values declined from individual customers in the UK.

The post Brexit devaluation of the pound by more than 20% meant fewer large value transactions and a 35% decline in revenue per transaction.

And the fintech’s marketing program, after the name change from OzForex, has not brought the kick in revenue expected.

“Due to the ongoing roll-out and refinement of its performance-based marketing program, client additions in Australia during Q3 were below expectations,” the company said in a market update.

“However, these are expected to improve through the remainder of the year as spend is allocated to mediums that generate the highest returns.”

Statutory EBTDA (earnings before taxes, depreciation and amortization) for the full year is now expected to be between $27.5 million and $28.5 million with statutory net profit of $19 million.

“Today’s update on trading is disappointing,” says Sargent.

“While softer market conditions in the UK as a result of Brexit have resulted in lower average transaction values, the revenue uplift from our marketing program in Australia during the third quarter and into January has not been as significant as we had hoped.”

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