Why the Catapult share price crashed this week

The Catapult Group Ltd (ASX:CAT) share price hit a new 52-week low yesterday.

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The Catapult Group Ltd (ASX: CAT) share price plunged 20% yesterday on the back of news that its CEO Joe Powell is to leave the company within his six months' work notice period.

Catapult's founder and chairman Dr Adir Shiffman commented: "As the global leader in the sports technology industry, the next phase of Catapult's growth requires a CEO with strong strategic capabilities, senior expertise in a global enterprise, and a commitment to creating shareholder value."

Catapult will undertake a search for a new CEO and is also on the hunt for a new CFO after it announced in December 2019 that the current CFO will be leaving the business sometime after March 2019.

The group reiterated guidance for it to deliver 29% revenue growth for its core elite athlete business over the first half of fiscal 2019, with cash on hand of $27.1 million as at December 31 2018.

One focus for its new CEO is likely to be strategy around investments in its loss-making Prosumer business and how sustainable this business is.

The stock is down around 65% over the past year to 64 cents today.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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