Oliver’s Real Food shares fall further after chairman walks out

The headaches at Oliver’s Real Food (ASX:OLI) — the owner of those healthy fast food options you find at big servos usually next to a McDonalds or a KFC — are continuing, with chairman Mark Richardson walking out on the company.

Oliver’s told the market this morning that Mr Richardson had resigned effective immediately, with the board to discuss appointing a new chairman or additional directors “in due course”.

Shares dipped 4 per cent to 2.6c on the news, just short of their all-time low of 2.1c earlier this month.

It’s the latest hit for the company, which shed 55 per cent of its value in late January when it announced a profit downgrade.

That followed a 55 per cent drop back in May last year, when shares dropped to 11c on the back of another profit downgrade.

Mr Richardson told investors he was “very disappointed” to announce that January profit downgrade but had said he was confident shareholders would soon start to see improvement from changes being implemented.

CEO Greg Madigan was optimistic about the company’s future earlier this year.

“The Oliver’s brand is young and still offers incredible potential,” he said. “If we continue our consolidation, improving the current portfolio and resolving sales and profitability challenges in subdued trading conditions, we will be in an incredibly strong position to move forward and expand, realising the potential we all know the brand possesses.”

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