A notorious short-seller levels strong accusations against Temenos while a majority shareholder calls for interim CEO Andreas Andreades to resign. Neither seems to sway the board of the Geneva-based IT developer.
Andreas Andreades is in hot water. Hindenburg Research, a much-feared short-seller, has drawn the bank IT software specialist directly into its sights, accusing it of accounting irregularities, failed products, and an elusive turnaround, as finews.com reported on Monday.
That has been the prompt for Petrus Advisers to call for the head of the interim CEO, who has withstood fierce criticism from many sides for a good long while now. The former chairman jumped back into the CEO seat after the previous CEO Max Chuard was forced to resign. Now Petrus, an activist majority investor in Temenos, is calling for Andreades himself to step back.
More Profit, Higher Dividends
The CEO didn't bow to the stiff headwinds facing him on Monday when the group disclosed its annual performance numbers. Instead, Andreades declared that he was «very pleased with our strong performance in 2023, where we delivered results that significantly exceeded all our raised guidance KPIs».
Indeed, the company managed to report earnings per share of 3.19 US dollars, a 13 percent increase, much of it due to a successful fourth quarter. In 2024, profit is seen rising another 8 percent. On top of it all, shareholders will receive a higher dividend for the 2023 financial year.
Promised Investigation
It is not yet clear if that will be enough to satisfy the company's owners, among them renowned Swiss financier Martin Ebner, although Temenons has scheduled an investor day for Tuesday as a way to keep them on board.
The accusations are not being completely ignored. Chairman Thibault de Tersant has raised the possibility of conducting an independent investigation related to Hindenburg's accusations, which is expected to deliver detailed responses. «I would like to share my optimism here that Temenos is a solid company with good financial controls», de Tersant indicated.
CEO Withdraws
The chairman is also standing behind the company's operational management under Andreades, saying it has «performed well». Still, the company's board has had little luck in finding a new CEO. They were in a position to announce an appointment in the second half, but it subsequently fell through.
According to de Tersant, good progress is being made to find an alternative candidate.
