The chief executive of insurance comparison business iSelect has resigned, less than four months after taking the company public.
An iSelect spokesman said Matt McCann, who has served as CEO since January 2012 had resigned, effective immediately.
He said Mr McCann’s decision was the result of a difference of opinion between Mr McCann and the iSelect board over the company’s direction.
Mr McCann’s departure comes less than four months after iSelect, which has been operating for 13 years, was first listed on the Australian Stock Exchange.
Current chief financial officer David Chalmers will take over the role in the short term while the company begins the search for a permanent replacement.
The company has had a disappointing first few months, with its stock price falling from $1.76 to $1.26 since its debut.
News of Mr McCann’s resignation came as iSelect released a trading update warning that revenue during its first half of 2013/14 would be lower than forecast.
The company expects its financial 2013/14 first half revenue to be $2.4 million below its prospectus forecast, which will result in a 2013 calendar year revenue of $126.5 million.
However, it says it expects calendar 2013 EBITDA to be in line with its forecast at $30 million, which would represent a 51 per cent increase on 2012.
Stay informed, daily
Executive chairman Damien Waller attributed the revenue fall to a decision to push back a car insurance marketing campaign.
But, he said, the outlook for the business was strong.
“iSelect is robust. We are tackling the challenging economic conditions as well as recent regulatory changes that have affected out largest business segment,” he said in a statement.
“We are confident we have the right business fundamentals in place to deliver results that will restore investor confidence and today’s announcement reflects this.”
