Eroad share price slumps as founder goes

Eroad founder and chief executive Steven Newman has resigned from the company and its board. Newman co-founded satellite navigation company Navman before moving to Eroad to become CEO in November 2007.

Current general counsel and company secretary Mark Heine will replace Newman as acting CEO effective yesterday. In a statement, the transport technology company said its board and Newman had started a succession plan in 2020.

“With the completion of the acquisition of Coretex Limited, and the relaxation of Covid-related travel restrictions, an international search to identify potential CEO candidates is well advanced with a process to appoint a new CEO in the first half of 2022,” the company told the NZX.

Board chair Graham Stuart declined to comment, saying he would prefer to address staff first. “I would have thought the company would have informed staff before they informed pretty much the rest of the world via the NZX.”

Mark Lister, head of private wealth research at Craigs Investment Partners, said: “It does appear to be rather abrupt.”

Eroad, which is dual-listed on the NZX and ASX, runs an electronic system to manage road user charges and comply with regulations for the heavy vehicle industry.

The company completed the acquisition of Auckland telematics provider Coretex in December. That same month the company joined the NZX 50 and enjoyed an 8 per cent jump in its share price to $5.52. Its share price has slumped this year from a high of $6.77 following a capital raise. On the market yesterday, it fell 63c or 14.89 per cent to $3.60 by the close of trade.