ERP.com lost 8.8% of its market capitalisation yesterday on the news of CEO Peter Forsyth`s resignation.
The group`s share closed the day at 156c, down 15c from Monday`s 171c close, after the group announced Forysth would step down and hand the reins to a founding member of ERP.com, director Dean Brazier, with effect from 1 September.
By midmorning today, however, the share had regained 4c to trade at 160c and was being bid upwards.
Forsyth, who founded and listed ERP.com Holdings in 1999, says his reason for leaving is simple.
"I formed ERP.com almost seven years ago," he says. "It`s been a great seven years, but it`s also been a tough seven years. I don`t think I`ll ever recover from listing a company in 1999."
He adds that he believes starting a company from scratch requires a certain leadership style, but taking it forward requires a different style.
"It`s also hard to keep the hunger and passion going year after year, and Dean has that hunger and passion."
Forsyth says the share price fall was probably also related to an early earnings guidance also provided yesterday.
The group, which has just ended its financial year, informed the market that it believed turnover and headline earnings would be at least 20% and 7% up respectively.
"I believe that was misunderstood," he says. "I don`t think the market realised that what we were saying was that it would be no less than that, so people think that will be the figure. But we`ve only just ended the financial year, so it`s far too early to tell.
"Plus, I think a share will always react to a CEO leaving, especially if he`s not fired. When a CEO`s fired, people don`t seem to mind, but when he leaves on his own, they want to know what`s wrong."
Forsyth says he will step down at the end of August. The group says he will stay on as a non-executive director until October to ensure the completion of the financial year and a smooth handover.
"I plan to do very little for a while," Forsyth says. "I don`t think I could work for another IT company other than ERP.com and I do need a break.
"I have been chatting to Blitec [ERP.com`s empowerment shareholder] and I do believe in transformation, so I may at some stage begin to do some pro bono work. But that would really be part-time."
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