Cost-of-living pressures may have mostly been referenced during reporting season by companies reliant on discretionary spending, but this has filtered into the world of financial services for Equity Story (ASX: EQS) whose target customers are those same households on low-to-middle incomes – retail investors. Seeking to navigate through these rocky conditions, Shane White has been confirmed as the Company’s new CEO in a bid to overcome such difficult trading conditions.
Equity Story’s core customer base have been particularly affected, tightening their budgets and limiting their engagement with investment products. Such a pull back contributed to the Company’s FY24 results where they reported a 5.4% decline in revenue to $1.1 million, but a greater decline in their net loss after tax to $1.9 million, down 25.3% on the previous year.
White steps into the leadership role with a clear understanding of the challenges facing the business and its clients. A long-time supporter of Equity Story and involved since its early funding stages, White brings experience in financial markets, corporate governance, and risk management. Having already contributed as a consultant in 2023, where he helped secure 11 equity capital deals, White is seen as a leader capable of steering the company through these tough times by taking over the role from Robert Corlett, effective immediately.
“I want to thank Rob for his stewardship, particularly in establishing the Wealth Advisory division,” White said.
“I have always loved the intent and values of Equity Story and the fine people behind it. Their passion and drive for helping others navigate the markets and build wealth strongly aligned with my beliefs. I have been involved with Equity Story since its seed round and am excited to be stepping into the CEO role.”
Equity Story, founded to help retail investors make informed decisions, has found the last few years increasingly difficult as economic pressures have weighed on its primary audience. Rising inflation and cost-of-living pressures have significantly impacted the disposable income of retail investors, many of whom are now prioritising essential spending over investments. This has led to a decline in demand for Equity Story’s subscription services, which include stock market analysis, wealth advice, and investor education courses.
The Company went public in 2021 via an IPO at an Offer Price of $0.20 per share where access to public capital was aimed at capitalising on rising retail investor interest during the pandemic boom. However, as the economic environment shifted, so did the financial priorities of its target market with EQS shares last closing at $0.029 – a 85.5% drop from their IPO price.
The downturn in market sentiment among smaller investors, who are typically the first to retreat during challenging economic times, has seen Equity Story struggle to maintain its subscription base.
White, with his extensive background in both financial and governance roles, has made it clear that his focus will be on rebuilding trust with retail investors and helping them navigate a volatile market. He plans to expand Equity Story’s Wealth Advisory division, offering products that cater to investors with limited resources but a desire to regain control of their financial futures.
“I am a shareholder with skin in the game,” he added.
“I look forward to building on the strong foundations my predecessors have created to help realise Equity Story’s potential and shareholder value and develop client wealth.”
White previously founded Pinnacle Integrity in 2012, a specialist firm providing integrity-based services. His experience includes investigations of issues relating to conduct, culture, process, procurement, and governance issues for both the public and private sectors. Pinnacle Integrity led a major change management review of one of Australia’s major banks in the lead-up to the Banking Royal Commission.
White commences in the role on a remuneration package of $220k per year, of which $150k will be paid in cash and $70k in EQS shares.
Corlett had been in the CEO role since December 2023 on a package of $277k per year having taken over from Trent McGraw who resigned in January 2023 making White the Company’s third CEO in less than two years.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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