Intueri plunges as CEO departs

Rob Facer will stand down after a tumultuous year that saw the education provider lose 82pc of its value.

The group’s financial situation is not seen improving in the near-term. Picture: iStock.

Beleaguered vocational education provider Intueri has seen its shares plunge 16 per cent after its chief executive departed on the back of a weak earnings update.

The company, which has significant operations in Australia despite deriving the bulk of its revenue in New Zealand, said chief executive Rob Facer would step aside after a tumultuous year that has seen the group lose 82 per cent of its value.

At the heart of the falls have been the group’s inability to meet prospectus forecasts and an investigation by the Serious Fraud Office in New Zealand.

The financial situation is not seen improving in the near-term, with the group telling investors a solid first-half pre-tax earnings result of $10 million would fail to translate into a robust full-year result.

Instead, the company foresees a 36 per cent slide on last year’s full-year profit to $15m.

Intueri’s last guidance said the profit for the full-year to December 31, 2016 would likely come in “slightly lower” than the disappointing $23.5m figure recorded last year, but it appears the decline will be more significant than first thought.

Outgoing boss Mr Facer will be immediately replaced by chief finance officer Rod Marvin as a search begins for a full-time replacement. Mr Facer will continue to have an advisory role in the meantime.

“We have taken the organisation on a significant journey since listing and this is now an opportunity for the board to pursue some fresh input to shepherd Intueri into the next phase of what I firmly believe is an exciting future,” the departing chief executive said.

Intueri chairman Chris Kelly said he was confident the tribulations of the past year will soon be put behind the group, despite ongoing regulatory uncertainty.

“Intueri continues to trade profitably and we believe the initiatives we are undertaking this year will strengthen our organisation and create a solid platform for future growth,” he said.

“Fiscal 2016 is a reset year as we adapt to meet the changing regulatory and operating environment and transition into a more focused and efficient organisation.”

At 11am (AEST), Intueri shares traded down 16 per cent at 26c.

The harrowing open has the dual-listed company eyeing its lowest valuation since a 2014 IPO, with its current market value of $25m a tenth of where it was on debut.