Keywords Studios PLC (LON:KWS) CEO Andrew Day will step down from his role following an extended leave of absence. Jon Hauck and Sonia Sedler will continue as joint interim CEOs until a replacement is found.
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Revenue growth excluding currency fluctuations and the impact of acquisitions was 25% through the first four months of the financial year. The momentum is expected to continue, though a strong performance in the second half last year means growth rates will temper.
The board expects Keywords to meet market expectations for the full year.
More detailed information on the group’s interim performance will be provided in early August.
The shares fell 0.7% in early trading.
Keywords CEO Andrew Day Stepping Down
Laura Hoy, Equity Analyst at Hargreaves Lansdown:
“It should come as little surprise that Andrew Day is stepping down from his role as CEO at Keywords. A health-related leave of absence that began in March prefaced his decision. The market rarely bills a CEO’s departure as good news and Day saw the group through a bumper year last year, so it’s understandable if investors are nervous about the unknown.
With a price-to-earnings ratio some way above the long-term average, execution is everything for Keywords. There’s no space for missteps and uncertainty, two things which may come bundled up with a new CEO.
But Day’s departure doesn’t change the story behind Keywords stock—the firm is in a strong position and its long-term growth story remains intact. So far this year, the group has seen strong revenue growth and expects to deliver on the market’s lofty expectations. As the search for a new leader progresses, ups and downs are inevitable, but a fresh pair of eyes is rarely a bad thing and Keywords should continue to perform well in the accommodative environment.”
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