OFX warns of profit downgrade, announces new CEO
(31 January 2017 – Australia) Foreign exchange provider, OFX Group has warned investors that its upcoming fee and commission income would be A$3 million lower than expected
The group cited weak conditions in the UK following the Brexit vote as the reason for the declines in revenue, saying: “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.”
"The board firmly believes that the growth opportunities for OFX, both domestically and abroad, are substantial and that the long-term outlook for the business is very strong."
OFX's earnings for the 2016-17 year are "now expected to be between A$27.5 million and A$28.5 million with a statutory net profit of at least A$19 million", the company said in a statement to the ASX.
The news coincides with the announcement of the resignation of CEO Richard Kimber who was in the role for 18 months. Kimber will be replaced by colleague, John Alexander Malcom.
OFX chairman Steven Sargent said on an investor call that the board started looking for a new chief executive following its weak November earning results in case the company kept failing to deliver.
"Delivery against the strategy has not consistently met the board or shareholders' expectations," he said.
"Having conducted a search process in the background, we believe that Skander has the global experience ... to execute on our growth ambitions and take advantage of the tremendous opportunities for OFX domestically and abroad."
Malcolm has extensive experience in the banking industry, including a decade with international bank HSBC in the UK, Westpac's card products group heading GE Capital in Australia and New Zealand.
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