Real estate business McGrath in crisis as entire board resigns on profit warning

THE ASX-listed real estate business McGrath (ASX: MEA), has been plunged into chaos after it was announced CEO Cameron Judson and the entire board, with the exception of founder John McGrath, will resign after yet another profit warning.1

John McGrath will will take over as interim CEO after the company announced it expects full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of between $5.8 million and $6.8 million.

McGrath had already revealed it did not expect to meet analyst expectations of $16.6 million in EBITDA because of slower-than-expected sales, particularly at its company owned agencies.

The turmoil has caused MEA's share price to plunge as much as 10 per cent in early trade to $0.52.

The shares were priced at $2.10 ahead of its market listing in December 2015.

John McGrath said Cameron Judson, who took over his role in August 2016, and head of corporate services Morgan Sloper will leave because the firm no longer requires their expertise in organic growth or merger and acquisitions. Read more

Ben Hall - Business News Australia - 22 Jan 2018