WiseTech founder Richard White’s scandals hits profit outlook

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

WiseTech founder Richard White’s scandals hits profit

This is the hidden content, please

• Sign In
• or
• Sign Up

WiseTech has told investors that media attention surrounding the conduct of its founder Richard White will reduce future earnings, pulling the recently departed chief executive’s attention away from product development.

In a statement to the market, WiseTech said it now expects full-year revenue of between $1.2 billion and $1.3b, at 15 to 25 per cent growth above the previous financial year, down from between $1.3b and $1.35b.

Earnings before interest tax depreciation and amortisation was now forecast to come in at between $600 million and $660m.

Shares in WiseTech plunged 11 per cent in early trade but research analysts at E&P and RBC said the company would receive solid investment support going forward.

“Although it is disappointing that recent events have resulted in guidance being downgraded, the board review interim update as well as the additional transparency provided throughout the process, provides encouragement that WTC will be able to move on from the recent issues and continue to focus on the business going forward,” wrote RBC.

The company said the commercial launch of its Container Transport Optimisation project had been pushed back to the second half of fiscal 2025, resulting in a delay to anticipated revenue.

“The board is disappointed that the diversion of Richard White’s attention away from product development at a critical juncture,” chair Richard Dammery said.

“These impacts are timing issues, not a stalling of growth; but suffice to say that the complications in Richard White’s personal situation, and the flow on impacts to how the product development teams have been able to tap into Richard’s support, have been more material than the board initially expected.”

In a video statement to shareholders, Mr White said he “deeply regret(s) the impact this recent media has had on the people around me, my family, friends, loved ones, the WiseTech team and you our shareholders, I’m truly sorry for how this has affected each of you”.

“I want to assure you that this has not diminished my passion and dedication of Wisetech and what this business will achieve in the long term,” he said.

In response to media reports about his personal conduct, Mr White stepped down as chief executive in October 24 before taking up a full-time, long term consulting role.

A board review into Mr White’s behaviour by law firms Herbert Smith Freehills and Seyfarth Shaw and forensic accountants McGrathNicol released along with Friday forecast found that overall there was not any impropriety.

The review concluded:

Personal relationships

Mr White disclosed all close personal relationships in the workplace, including romantic, familial, or long-standing ones, as required by company policies. Allegations of a romantic relationship with a current employee were found to predate the employee’s employment and were disclosed. There was no evidence of preferential treatment.

Business transactions

Allegations of misuse of company funds for personal expenses were not substantiated. Forensic analysis confirmed that White personally paid for plastic surgery, and no evidence was found of company expenses for accommodations for White’s acquaintance. Transactions with a supplier with whom White had a close relationship were consistent with market prices, with no evidence of impropriety.

Governance and Workplace Conduct

The review concluded that past debates on key management personnel disclosures were appropriately addressed with no need for revision. While White’s direct communication style was sometimes uncomfortable, it aligned with the company’s culture of “creative abrasion”. There was no evidence of bullying, intimidation, or unlawful behaviour.

Despite the reports of questionable behaviour over a ******* stretching back over a decade, shareholders have easily waved through the directors’ remuneration report by 98 per cent, with a mere 1.9 per cent voting against.

Mr White, a 38 per cent shareholder in WiseTech recused his voting shares from the remuneration vote.

There was near unanimous support for increasing non-executive director’s remuneration be increased from a maximum of $1.8 million to $3m.

This is the hidden content, please

• Sign In
• or
• Sign Up

#WiseTech #founder #Richard #******* #scandals #hits #profit #

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up