Macdonald appointed interim CEO

Trade Me’s chief executive officer, Jon Macdonald, will continue with the company beyond the end of 2018 to ensure continued good momentum in the business and a smooth transition to a new CEO.

In June, Macdonald announced his intention to stand down this month. However, with the recent private equity interest in Trade Me, he and the board have agreed he will continue to lead the company on an interim basis. The company will announce any news of a new CEO appointment in due course.

On November 21, Trade Me confirmed receipt of an indicative offer from UK-based private equity firm Apax Partners, which offered $6.40 a share, or about $2.5 billion, for the internet company. Then on December 5, a rival non-binding indicative offer emerged from US private equity firm Hellman & Friedman of $6.45 a share.

The interest comes after Trade Me hit its highest revenue and profit this year, but its growth has slowed. The Wellington-based company saw its revenue grow by 6.6 per cent over the year to June 30 to $250.4 million. Earnings before interest, tax, depreciation and amortisation rose by 6.2 per cent to $163.8m while net profit after tax increased by 3.9 per cent to $96.6m.

Trade Me’s largest business, Trade Me Motors, drove the result, with 12.7 per cent revenue growth. There was a 41 per cent revenue increase from dealer premium products.

The company expects revenue growth of between five and eight per cent in 2018/19 with operating profit after tax to expand at a similar rate.