Shares in Australian Clinical Labs Ltd (ASX: ACL) have hit their lowest levels since listing on the ASX after the company announced its Chief Executive Officer is leaving.
Shares in the company hit a low of $2.08 before recovering slightly to be changing hands for $2.16, down 10.7%, on Monday.
The company, which also released its first half results on Monday, said that CEO Melinda McGrath, "has confirmed that she will not be renewing her contract following its conclusion on 30 August 2026''.
Ms McGrath, the announcement said, had been with the company for 10 years, including leading it through its listing on the ASX in 2021.
Ms McGrath said in a statement:
I would like to take this opportunity to thank our pathologists and scientists for their leadership, and the broader Clinical Labs team for their passionate commitment to the service of our patients and referring medical practitioners. In particular, I would like to recognise the Clinical Labs executive and broader leadership teams, whose drive and innovative approach to the development of the business has been outstanding. It has been a privilege to work with them over the past ten years. I wish them and the Board the best in the future as they continue to grow the business.
The company said a recruitment process had started, and shareholders would be kept up to date.
Image source: Getty Images
Underlying result positive
In a separate announcement, the company said it had generated $365.4 million in revenue in the first half, down 1%, while net profit was 52.4% lower at $5.6 million.
On an underlying basi,s net profit was up 9.1% at $13.1 million.
The company said in its announcement to the market that revenue fell because of "subdued market conditions and … portfolio rationalisation''.
The company added:
While market growth was tempered, there was continued strength in Genetic and Reproductive Health testing, with above market expansion in carrier screening and improved performance in non-invasive prenatal testing and fertility related services. Oncology genomic testing volumes increased significantly, supported by the introduction of EndoPredict to the Medicare Benefits Schedule, resulting in strong uptake from oncologists. Specialist referral growth remained positive, particularly in outpatient settings.
Australian Clinical Labs said it was also in the final stages of testing for artificial intelligence-enabled back-office tools, which it said, "are expected to unlock meaningful cost savings in late FY26 and onward''.
The company will pay an interim dividend of 3.75 cents per share, in line with the same period last year.
Australian Clinical Labs was valued at $465.2 million at the close of trade on Friday.
