Boom reports smaller $1.5m loss; CEO gets $675K golden handshake as shares fall
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Shares in crane company Boom Logistics dropped 19 per cent after reporting a smaller full-year loss and farewelling its boss with a $675,000 retirement payment.
Boom, which goes by the tagline ‘Lifting Solutions for Australia’, dropped to a low of 19.5c on Wednesday before recovering to 21.5c as it reported a net loss of $1.5 million.
That was a significant improvement on last year’s $22.6 million full-year loss, however. Revenue also shot up 22 per cent to $183.1 million — and was expected to grow 15 per cent this year.
The business (ASX:BOL) had reached “an important turning point” and was showing “positive momentum in a challenging environment”, shareholders were told.
Chief executive Brenden Mitchell, who has helmed the company for a decade, will step down as the company’s leader on September 20 ahead of a handover period to incoming successor and current COO Tony Spassopoulos.
Mr Mitchell will retire from the company entirely in February.
Mr Mitchell will receive a “retirement termination payment” of $675,000. As at August 15 he held about 3 million shares. He will not receive short or long-term incentives tied to the 2019 financial year.
“The decision to retire was difficult but it was made easier knowing the succession plan has come to fruition and the company is in a safe set of hands,” he said.
“I’ve worked alongside Tony for over ten years and known him professionally for over two decades. He’s the right leader for the business and I have every confidence that his vision and strategy will continue to strengthen the business and build its respected reputation in the market.”
Mr Spassopoulos said: “It is a great privilege and I plan to protect the achievements acquired over the past ten years by continuing to add value to our customers and to developing our people.”