Smartgroup CEO to retire, shares plummet
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  • Employee management servicer Smartgroup's CEO is retiring at the end of February next year
  • Deven Billimoria has been with the company since its start-up and has held the Chief Executive role for 17 years
  • The company's Chief Financial Officer is set to take on the top role. Deven will remain with the company as an advisor for another 12 months
  • Also in today's release, Smartgroup revealed its adjusted net profits after tax are up nearly four per cent
  • The figure for the 2019 financial year is forecast to be roughly $81 million
  • Shareholders haven't responded kindly to Smartgroup's news, wiping $1.50 off the groups' share price. Shares in the company are now trading for $9.49 each

Employee management servicer Smartgroup will see its CEO, Deven Billimoria, retire at the end of February next year.

Deven has been with the company since 2000 and has held the Chief Executive position for 17 years. Smartgroup has advised its Chief Financial Officer, Tim Looi, will take on the top role.

Discussing his retirement, Deven said: "Smartgroup is in great shape with more customers, a broader product offering and greater profitability than ever. It's clear to me that evermore meaningful opportunities lie ahead for the group."

It is understood Deven recently informed the board of his decision, and intends to retire once the 2019 full financial year results are released.

Under Deven's leadership, Smartgroup transformed from a start-up business to an ASX 200 company. The group's management team has administered roughly 350,000 salary packages and over 66,000 novated leases under management.

The company informed the market of its forecast net profit after tax balance for 2019 financial, which demonstrates a 3.8 per cent growth on the previous financial year.

It is expected the net profit sum, which includes adjustments to exclude after tax effects, will be roughly $81 million.

Deven will remain with the company as an advisor for another 12 months to "provide strategic support across key initiatives." A search for a new Chief Financial Officer is currently underway.

Additionally, a former investment banker at Macquarie Capital Angus Buckley will be joining the Smartgroup team as Chief Commercial Officer next January.

"Since our IPO, Angus has worked closely with the Smartgroup Board and executive team assisting with various acquisitions and capital raising, and providing strategic advice," company Chairman Michael Carapiet said.

"He will be a fantastic addition to the team and bring considerable experience," Michael added.

Following the release, Smartgroup's share price plummeted 13.65 per cent, wiping $1.50 of its share price. Shares in the ASX 200-lister are now trading for $9.49 apiece at market close.

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