Seems a pretty negative article (although unsurprising as they almost have to follow their old sentiment somewhat)
Embattled delivery management software group GetSwift acknowledged the "dark cloud" hanging over the company at its annual meeting on Thursday, the first time it has fronted shareholders since damaging contract losses were revealed. The Australian Financial Reviewreported in January that the company did not update the market when it no longer had a contract with previously announced customers, or overstated the nature of several of its contracts, some of which were only signed on a temporary basis. The revelation caused a loss of confidence in the high-flying software as a service (SaaS) stock, and GetSwift's share price fell from a high of $4.30 in December 2017 to where it sits now at 38¢.
Referring to this year's disclosure controversy, chairman Michael Fricklas said "the legal challenges of class action lawsuits and an ASIC investigation have required management attention that we would rather focus on the underlying business".
"We are working diligently to resolve these matters quickly and appropriately," he said.
GetSwift president Joel Macdonald also commented on a tough year for the company. Speaking about how GetSwift's New York operations were helping the staff's circadian rhythms, because they no longer had to deal with clients 24-7, he said: "We're getting a little bit more sleep, subject to some of the dark cloud over the company right now that we're working through," he said.
Shareholders' questions to management at the AGM mainly focused on the controversy that has embroiled the company since the start of 2018.
One shareholder asked Mr Fricklas if the board had considered retracting or adjusting some of its statements to the ASX that led to a trading halt. "We believe the disclosures that we've made are accurate," replied Mr Fricklas.
"So you've seen some additional colour come out in our disclosures, but we don't believe we made inaccurate disclosures."
The board was also asked if the disclosures were accurate, why then had there been a change in the apparent pattern of disclosure statements since the controversy erupted. The shareholder was concerned this meant GetSwift was not acquiring any new customers.
Mr Fricklas said: "The way that those communications were received by the market may not have been exactly what the company intended them to be.
"The company has decided to be more conservative in its disclosures."
GetSwift appointed three new directors in 2018, including Mr Fricklas.
The latest appointee to the board is ex-ASIC commissioner Belinda Gibson, who was not present at the meeting in person, but appeared via telephone.
GSW Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
