Eclipx Group flags impairment charges of $110-$130m, CEO steps down

Company News

by Anna Napoli

Eclipx Group (ASX:ECX) has flagged non-cash impairment charges of between $110 to $130 million in its interim first half 2019 results.

The charges relate to the under performance of Grays and Right2Drive and the Board says these businesses have not been effectively integrated.

Eclipx says the charges combined with softer sector conditions has resulted in lower than expected earnings in the 6 months ended 31 March 2019.

Eclipx has received interest from a number of parties regarding the Grays and Right2Drive businesses and they are being prepared for sale.

Separately the company has announced that the Group Managing Director and Chief Executive Officer (CEO), Doc Klotz, will step down as CEO and as a Director effective immediately.

Julian Russell has been appointed CEO and Bevan Guest, currently Managing Director of Fleet Australia, has been promoted to the newly created position of Chief Commercial Officer.

The changes come after the very recent period of disappointing performance with the non-executive board members intensely focused on the best way forward for the Company.

Shares in Eclipx Group (ASX:ECX) closed 4.48 per cent lower at $0.96 on Friday.