Why the QuickFee (ASX:QFE) share price jumped higher today

The company’s shares received a boost on Wednesday.

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The QuickFee Ltd (ASX: QFE) share price finished the day in the green following the company’s CEO transition and trading update.

By close of trade, shares in the professional services payment provider had travelled 2.04% higher to 25 cents. In earlier trade, the company’s shares leapt by as much as 12.2% to 27.5 cents before retreating to their current level.

CEO transition completed

Investors were buying up QuickFee shares in response to the company’s latest news.

In a statement to the ASX, QuickFee announced it’s appointed Eric Lookhoff as its new CEO. This comes as founder and current CEO Bruce Coombes steps into the role of managing director of Australian operations. Coombes’ new responsibilities also include delivering special projects to market.

Lookhoff, the incoming CEO, will take over the reins on 1 July and join the board as an executive director. Previously, Lookhoff was QuickFee’s president of its United States business from February 2021. 

QuickFee chair Barry Lewin said:

Bruce created our Australian and US businesses from a standing start and achieved significant organic growth. He will continue to be a major contributor to QuickFee in the company’s next phase of growth, as a board member and in his new role overseeing Australia and other major growth projects.

We are delighted to have someone of Eric’s calibre to drive the overall growth of QuickFee going forward. Eric brings a unique skillset, enormous experience, and a strong US professional network that will ensure QuickFee is best able to capitalise on major growth opportunities in QuickFee’s payments business. This change in leadership positions QuickFee well for the future.

Trading update

In a positive sign of recovery, QuickFee stated operating performance for May and June has delivered encouraging results. While no financial details were given, the company revealed three key areas are witnessing growth in Q4 FY21. They are Australian traditional financing, United States PayNow transaction volumes, and QuickFee instalments in both geographical markets.

Finally, the company noted traditional financing in the US is in line with the previous quarter (Q3 FY21). The US Government’s stimulus measures have been blamed for weighing down on QuickFee’s lending growth.

QuickFee share price snapshot

QuickFee shares have fallen by around 45% over the past 12 months. Year to date share price performance has also been subpar, with the company recording a 36% decline.

On valuation grounds, QuickFee commands a market capitalisation of roughly $51 million, with approximately 201 million shares on issue.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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