Bapcor (ASX:BAP) share price down despite positive CEO news

The Bapcor Ltd (ASX:BAP) share price has fallen despite positive news that the CEO will be sticking around in the business for longer.
The post Bapcor (ASX:BAP) share price down despite positive CEO news appeared first on The Motley Fool Australia. –

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The Bapcor Ltd (ASX: BAP) is down around 1% after announcing news about its CEO.

Bapcor is a large auto parts business with a number of different divisions including Burson and Autobarn.

Here’s what the company announced about its boss.

Bapcor CEO extends his tenure

The Bapcor board announced that the CEO and managing director Darryl Abotomey has agreed to extend his tenure to 31 October 2023. He has been the leader of Bapcor since September 2011.

The Bapcor Chair, Margie Haseltine, said:

We are delighted that Darryl is extending his leadership of Bapcor through to October 2023. Under Darryl’s guidance Bapcor has been one of the top performing ASX listed companies since it listed in April 2014, going from strength to strength, year after year.

Bapcor has a clear 5-year strategic plan including specific targets, with many of the projects underway and which will be brought to fruition during Darryl’s remaining tenure.

What else has been happening recently?

Last week the auto parts business announced its FY21 half-year result.

Bapcor said that along with strong financial performance, it has continued to progress major projects that will underpin the group’s future success. It said it’s in a very solid financial position and capable of capitalising on opportunities as they arise.

The auto parts business reported that its revenue from operations grew 25.8% to $883.6 million. Pro forma earning before interest, tax, depreciation and amortisation (EBITDA) went up by 36.5% to $145.6 million, pro forma net profit after tax (NPAT) grew by 54% to $70.2 million and pro forma earnings per share (EPS) rose 28.9% to 20.7 cents.

Whilst the net debt grew from $109.2 million to $120.4 million, the leverage ratio improved from 2.3x to 0.6x.

The Bapcor board decided to declare a fully franked interim dividend of 9 cents per share, up 12.5% compared to the prior corresponding period.

Bapcor said that it continues to have avenues to drive the performance of the business including further network growth, realising operational efficiencies and expansion of the own-brand product range. It also continues to work on its new distribution centre in Victoria as well as its online capabilities.  

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Bapcor (ASX:BAP) share price down despite positive CEO news appeared first on The Motley Fool Australia.

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