The Bapcor Ltd (ASX: BAP) share price is under the spotlight today after the auto parts business fell almost 10% yesterday.
Bapcor is a large auto parts business that has brands like Burson and Autobarn.
Bapcor share price in focus
It was a difficult day for Bapcor shareholders yesterday.
Not only did the share price drop around 10%, b
ut the company announced the retirement and long-time CEO and Managing Director Darryl Abotomey. He’s going to retire on 28 February 2022.
Mr Abotomey has been with Bapcor for 10 years and will remain available to the company until 30 June 2022 to assist with an orderly transition.
The Bapcor board thanked him for his 10 years of service and the significant commitment and contribution he has made to the business over that time. That includes driving the strong performance of the business and executing on its growth plan. The Bapcor share price has also grown.
Mr Abotomey comments
The outgoing Bapcor CEO and MD, Mr Abotomey said:
“It has been a privilege to lead the Bapcor business over the last decade and see the company’s transformation over that time. With a strong operating and financial position, it feels like an appropriate time in the company’s journey to step back and retire. I have appreciated and thank Bapcor’s passionate team members, franchisees, suppliers and shareholders for their support over the past ten years.”
Who will be the new CEO?
There has been no person officially chosen for the role yet.
An extensive global search process has commenced to appoint a permanent CEO.
If a permanent CEO has not been appointed by 28 February 2022, Bapcor Non-Executive Director Mark Powell will assume the role of acting CEO.
What does this mean for Bapcor and the share price?
Investors clearly believe Bapcor will be a weaker business without Mr Abotomey at the helm. He has done a wonderful job of growing the business organically and through acquisitions, in Australia and overseas.
The board reminded investors about the record FY21 result and confirmed there is no change to previously issued financial guidance. Bapcor is aiming to at least meet the earnings it made in FY21 again in FY22.
I think Bapcor is a promising business, particularly with its exposure to growth areas like Asia, trucks and electrical parts.
The share price has only dropped back to where it was a few weeks ago, so the 10% fall isn’t as though it has pushed it to a 52-week low. I think it’s worth having on a watchlist of ASX growth shares, particularly if it keeps falling.
