Shares in the troubled education provider Vocation jumped 10% after the company announced the appointment of a new CEO.
Stewart Cummins, who was appointed CFO in December, will replace Mark Hutchinson as CEO and managing director in May.
Previously Cummins was CFO at waste management provider Transpacific Industries and before that he was CFO at TNT Australia.
The group managing director and vocational education and training division CEO roles will be merged, with the current VET division CEO, Ross Robinson, departing.
The company posted a $273 million first half loss and has downgraded its earnings outlook after Victoria’s Department of Education and Early Childhood Development (DEECD) withdrew about $20 million in funding after an investigation into some of the company’s courses.
The company is in the middle of a strategic review to be completed by April-May.
Vocation has reduced debt to less than $10 million after using the proceeds from the sale of assets.
Vocations shares are trading up 10% today to $0.087. The stock has fallen from about $3.30 in September.