Humm Group’s board is recommending that shareholders reject a proposal by Jeremy Raper and Sandhurst Trustees to remove three current directors and appoint two new nominees at the upcoming meeting on February 19. The board has labelled the proposal as “reckless and flawed,” arguing it jeopardises the company’s capital, lender relationships, and future growth opportunities. Humm Group provides consumer finance and business finance products. The company operates primarily in Australia and New Zealand.
Humm’s board criticised the proposal, stating it prioritises a short-term cash benefit at the expense of long-term shareholder value and structural integrity of the company’s capital base. They defended their performance since mid-2022, highlighting a doubling of commercial receivables to $3.3 billion, the successful exit from unprofitable small-ticket BNPL operations, and the turnaround of international consumer businesses. Other achievements cited included launching a new big-ticket POS product, repaying $54 million in perpetual notes, and increasing statutory net profit from $2.9 million in FY23 to $40 million in FY25.
The board also raised concerns about the independence and relevant experience of the nominees put forth by the convenors of the meeting. They warned that passing the resolutions could lead to short-term, reactive decision-making that would ultimately harm the company. The current directors are urging shareholders to consider the long-term implications of the proposed changes and vote against the resolutions.
Shareholders are now faced with the decision of whether to support the current board or vote in favour of the changes proposed by Raper and Sandhurst Trustees. The outcome of the vote at the meeting on February 19 will significantly impact the future direction and stability of Humm Group.
