The iSelect Ltd (ASX: ISU) share price had a few ups and downs today, climbing to 35 cents in afternoon trade before dropping to its opening price of 34 cents. This comes after the company announced a trading update this morning and advised on the appointment of a new permanent CEO.
After a turbulent year, October comes as a welcome reprieve for shareholders, with the iSelect share price up 7% so far this month. Like most ASX shares, iSelect was pummelled by the COVID-19 market panic.
The iSelect share price fell 37% from 21 February through to 23 March and has regained 41% since that low, leaving shares down just 6% year-to-date. That closely mirrors the performance of the All Ordinaries Index (ASX: XAO), also down 6% since 2 January.
What does iSelect do?
Based in Melbourne, iSelect's services offer Australians the ability to compare and purchase insurance, personal finance products and various utility subscriptions. The company also owns the comparison website, Energy Watch. The company's stated goal is "to make Australians' lives easier by saving them time, effort and money".
Atop its Melbourne operations, iSelect has support offices in Fiji and Philippines.
Why is the iSelect share price on the move?
This morning iSelect announced the appointment of a new permanent CEO, alongside providing a trading update.
Warren Hebard, the company's current chief marketing & commercial officer, replaces Brodie Arnhold, who was appointed as interim CEO in April 2018.
iSelect chairman Christopher Knoblanche thanked Mr Arnold for "his hard work and commitment through what has been a challenging period for the company". He added that the board "believes that the time is now right for Brodie to complete a handover to a permanent CEO".
Warren Hebard said:
Having worked closely with the entire executive team on the development of the FY21 strategy, I am confident that the plan we have in place is the right one. Brodie hands over a business that is on track to deliver significantly improved profitability in FY21 and is well-placed to return to growth in FY22.
The company also reported that the changes it had made to its operating model in the fourth quarter of 2020 were "showing positive early signs for the business" in the current quarter.
iSelect posted first quarter FY21 earnings before interest, taxes, depreciation and amortisation EBITDA of $8.1 million, compared to $1.7 million in the same quarter last year. The company noted it had received $3.4 million in JobKeeper payments during the past quarter, but that this came to an end in October.
The company's cash balance at 30 September was $12.5 million, up from $10.5 million on 30 June.
With a new permanent CEO and its Melbourne headquarters slowly emerging from lockdown, iSelect's share price is one to keep an eye on.
