By Cara Waters
WiseTech Global boss Richard White’s personal wealth has zoomed past $6 billion, after the logistics technology platform he founded saw its value rocket on the back of upbeat full-year results.
The company, which makes software for the freight industry, posted an 18 per cent jump in full-year revenue to $507.5 million on Wednesday and foreshadowed more growth ahead.
WiseTech shares jumped as much as 56 per cent on the outlook, adding an extra $5.3 billion to its bottom line and pushing the company’s market capitalisation up to $15.65 billion. Given Mr White’s 44 per cent stake in the business, the pop in WiseTech’s share price translated to a $2.3 billion boost to his wealth to $6.8 billion
The jump in the share price, from $36.27 at market open to $56.78, also prompted the ASX to issue the company a speeding ticket, querying the share price movement and volume.
WiseTech chief executive Richard White saw his personal wealth soar off the back of the results. Credit: Sam Mooy
WiseTech’s results were at the top of its expectations and its guidance predicted continued revenue growth of 18 to 25 per cent for the next year. This was despite the company’s profit falling to $108.1 million, down 33 per cent from $160.8 million last year but still ahead of consensus expectations.
Mr White said WiseTech had been ahead of the curve on confronting the challenges posed by the pandemic.
“We were very early to predict the pandemic, much earlier than most,” he said. “We were very early on in seeing what was going on in China, we saw the trade figures drop. We heard from our staff who were locked up in Wuhan that there was a serious problem.”
Mr White added the company adjusted its strategy at an early stage to focus on large customers, betting that the bigger economies would bounce back quicker from COVID.
“We told the market we were [doing that], we were duly smashed for being the messenger,” he said. “It turned out that we were right, and that we got most of that aspect of things right.”
He warned supply chain disruption, capacity constraints and the outbreak of new COVID-19 strains in key markets was likely to continue to impact global trade until there was a widespread rollout of vaccines.
Mr White added that WiseTech had finished the major part of its program of acquisitions over the last year and the results have put to bed the criticism levelled by short sellers, notably J Capital, who had cast doubts over the company’s strategy
“I would think that the results today are an absolute testament to what happens when you do M&A [mergers and acquisitions] properly, and you integrate those businesses, you make adjustments so that these become part of the core,” he said.
“I understand that short sellers do what they do, but we have a business to run and our job is to think for the long term, and to think of things that are really valuable, that are going to make a difference to the business.”
Citi analyst Siraj Ahmed said WiseTech’s strong revenue growth was the highlight of the results.
“A solid result, with guidance stronger than expected,” he said. “With the company talking to a strong pipeline and guidance implying consensus upgrades, we are not surprised that the stock is up strongly today”.
WiseTech has declared a dividend of 3.85¢ per share, taking total dividends to 6.55¢ compared to expectations of 5¢.
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