Andrew Goodwin, who is currently the Chief Financial Officer at non-bank lender Wisr (ASX: WZR), has now taken on the position of Chief Executive Officer with immediate effect. This change comes after the Wisr Board decided to terminate the employment of the previous CEO, Anthony Nantes for undisclosed reasons.
As part of the Board’s continuous succession planning efforts, Goodwin had been recognised as the primary candidate to take over as CEO to guide Wisr in its upcoming phase of profitable expansion. He will receive an annual fixed salary of $590,000.
In September last year, Wisr’s management team, including Nantes, came under the scrutiny of the Federal Government for firing a female manager after she complained about the then-COO Matthew Lu. Lu allegedly talked about punching her face, which prompted the manager to file a complaint, but Nantes wasnt having it. Wisr referenced some Skype messages as the reason for sacking her and eventually had to pay over $50,000 for unlawful termination.
Besides this little bruise to its reputation, in April this year, the Company laid off one-fifth of its staff, citing high costs and increasing competition.
During Q4 FY23, there was a significant 71% decrease in new loan originations, totaling $53 million. This decline was attributed to the Company’s deliberate limitation of loan origination, which was prompted by the continuous tightening of monetary policies. The operational cash flow dropped to $2.6 million, down from around $4 million in Q3 FY23, while the EBITDA reached $900k. Additionally, the quarterly loan book value experienced a reduction from $968 million in Q3 to $931 million in Q4.
The cash kept within the Wisr Warehouses, which totals approximately $32 million, includes repayments made by customers (covering both principal and interest) and funds that haven’t been used yet from note subscriptions (mainly third-party debt). These funds are limited in their use, specifically intended for activities such as funding loans and managing the operations of the Wisr Warehouses, which includes expenses like trustee fees.
In the Q4 report, Goodwin noted, “At the beginning of the quarter, we made the prudent decision to further reduce operating costs while continuing to focus on profitability. This included deliberate moderation of loan origination volume along with additional headcount reductions. These temporary settings are considered appropriate to maintain a strong balance sheet amidst the backdrop of continued monetary tightening and broader economic uncertainty.”
Wisr is undergoing multiple changes, from undertaking layoffs to shaking up its management. As Goodwin takes the baton, he will be gearing up to get Wisr’s costs back in order.
Alinda is a Business Reporter for The Sentiment
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