Corporate: Simble Solutions is replacing its CEO and cutting costs; shares rally
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It was quiet morning on the markets this Melbourne Cup day but one rising company was Simble Solutions (ASX:SIS).
Simble offers workforce mobility and energy usage monitoring software to its clients. While competitors such as BidEnergy (ASX:BID) surged in the last couple of years, Simble went through a tough 12 months, falling from 11c to 4c on Friday – a drop of over 60 per cent.
Despite client wins, it struggled to keep costs under control which resulted in ASX inquiries about its cash flows.
But Simble climbed nearly 10 per cent this morning with three pieces of news hinting that better times are ahead. First it will save $700,000 in 2020 thanks to cost reduction initiatives. Second, it raised $1.1m in capital at 5c per share, a premium to Friday’s closing price.
And third, it is overhauling its board. CFO Ronen Ghosh is becoming CEO, replacing Fadi Geha after a seven-year tenure. Geha will stay on as a director and help with the transition.
Ghosh is an accountant by trade who has previously served in finance roles in the Albert Group of companies and BMG.
He told shareholders this morning that the company had exciting prospects but he was “cognisant of the fact that urgent changes to the financial management are needed to support the growth of the company”.
Under siege satellite play Speedcast (ASX:SDA) has had its S&P credit rating cut from B to B- and its outlook remained negative. The company told shareholders this would not impact funding costs because it had no ratings covenant in its debt facilities. It also said it some of its operational initiatives were “starting to deliver improvements in some areas”.
Cobalt explorer Celsius Resources (ASX:CLA) told shareholders it would go ahead with a meeting to allow them to vote on whether or not to keep certain directors. A bunch of shareholders want to oust Bill Oliver and Brendan Borg and replace them with John Westdorp, Hui Palleson and Carl Swensson. Celsius said while a handful of shareholders did not meet a legal timing technicality, enough shareholders properly gave notice to hold a meeting. The meeting will be separate to its AGM due to AGM-extension costs payable to ASIC.