WiseTech's Richard White says he has only spoken 'logically and intellectually' to board
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More news: Wisetech founder Richard White has told the company’s annual general meeting that he has only spoken “logically and intellectually” with board members and that he has never “pushed or harassed”.
White made two appearances via video link at the AGM after two questions from shareholder activist Stephen Mayne were directed at him. White’s earlier address was pre-recorded.
Mayne asked White directly the differences between current chair Richard Dammery and former chair Andrew Harrison.
“First of all, the difference between you [Dammery] and Andrew Harrison, there are differences. It's mostly stylistic. I had a very good relationship with Andrew Harrison, and I have a very good relationship with you, and I have a very good relationship with all of the board,” White said.
“All of you know that I don't have any problems in speaking what I think is right for the company, and you've always accepted that, and you've always pushed back reasonably when we've had those intellectual debates, and they are intellectual debates.
“I've never taken the view that I need to push or harass or do anything else other than speak logically and intellectually, particularly like in the intellectual debate we have, and I have that with the hold of the board, I'm happy with both our prior chair and the current chair.”
Mayne also asked whether White, who has a controlling 38% stake in the company and had been steadily selling down his stake in recent years, would continue to sell down his holdings.
“First of all, I've always taken the view that a gentle, orderly, predictable sell down is an appropriate thing for somebody who has a life stake and who's the founder and creator of the company. And I continue to have that view,” White said.
“I also continue to have the view that I will remain a substantial shareholder for the very long term.”
WiseTech’s share price pared back some of its earlier losses and was down 9.13% to $126.24 by 11:31am AEDT.
WiseTech shares tank on guidance downgrades
More news: Shares in WiseTech Global plunged at market open on the ASX, after the troubled technology group revised down its full-year guidance following a raft of allegations against founder and former CEO Richard White.
WiseTech shares were down 19% to $112.56 by 10:30am AEDT.
Meanwhile, E&P Capital analyst Paul Mason noted that the findings of WiseTech's review into some of the accusations against White, which included no evidence of mis-use of company funds, should be seen as a positive.
What they said: "This should be seen as a positive overall — to the point that it is probably unfortunate at this point that the company restructured Richard White’s role," Mason said.
"Perhaps the company can look into unwinding the changes that were made at the height of media pressure now that an independent review of all the issues raised in the media has occurred and found no issues."
WiseTech downgrades guidance after Richard White saga
The news: WiseTech Global has lowered its full-year guidance as company chair Richard Dammery told shareholders that the diversion of founder and former CEO Richard White's attention "away from product development at a critical juncture" impacted the timing of key product releases.
The company also announced the findings of a board review into allegations surrounding White’s personal life, concluding that he had not engaged in unreasonable behaviour.
The numbers: WiseTech now expects FY25 revenue of between $1.2 billion and $1.3 billion, representing revenue growth of 15% to 25% compared to FY24. This compares to original guidance of between $1.3 billion and $1.35 million, representing revenue growth of 25% to 30%.
It anticipates EBITDA of $600 million to $660 million, marking growth of 21% to 33% year over year, down from its original $660 million to $700 million range. The company's full-year EBITDA margin is expected to be 50% to 51%, down from 51% to 52%.
The context: WiseTech said that "as a result of recent media attention" and subsequent organisational changes, the commercial launch of the company's 'Container Transport Optimization' product has been delayed. It is now expected to launch in the second half of the financial year, resulting in a delay to anticipated revenue.
However, WiseTech said the long-term value of the product remains unchanged, and the company is also seeking to mitigate the revenue delay through other "significant initiatives" that are expected to have long-term benefits.
In prepared remarks ahead of today's annual general meeting, Dammery said that the past month has been a "challenging time" for the company and that the board is "disappointed" in the diversion of White's attention at a "critical juncture".
However, Dammery said White and the board have "never been in conflict or at odds" and White's resignation as CEO of the company was "entirely his decision". White stood down with immediate effect in October, following a raft of allegations about his private life.
In a pre-recorded message to shareholders, White said: "I deeply regret 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 am truly sorry for how this has affected each of you."
Meanwhile, WiseTech provided an update on its board review, conducted following the claims around White's private life. It found no evidence that White failed to disclose a number of close personal relationships in the workplace to the board, including those of a romantic or familial nature. It also found no evidence of White's misuse of company funds or expenses.
The review also concluded that White has not engaged in "repeated unreasonable behaviour" in the workplace, after former director Christine Holman raised allegations of bullying and intimidatory behaviours.
What they said: Law firm Seyfarth Shaw, appointed to co-lead the review, found that White "has a direct approach and that from time to time is involved in robust and challenging discussions".
"This is generally consistent with the process of 'creative abrasion', which was widely acknowledged in the review to create significant value for the organisation. However, there is the capacity for managers to find this uncomfortable and confronting, particularly in group settings," Seyfarth Shaw said.
The sources: ASX announcement, ASX announcement, ASX announcement, E&P Capital research
