McGrath says it has 'information' on founder John McGrath's alleged gambling debts
Written on the 15 February 2018 by Ben Hall
Listed real estate business McGrath (ASX: MEA) says it has "further information" and is seeking "urgent clarification" from founder John McGrath over media reports he has $16.2 million in gambling debts.
During an investor call following the release of the company's half year results which revealed a $25.5 million loss, Judson indicated he would soon reveal key information surrounding the gambling debt claims.
Shortly after posting the half-year results, McGrath went into a trading halt because of "recent media comment in relation to Mr McGrath".
Revenue for the six months to December 31 was $51.6 million, down 23 per cent on the same period a year ago. No interim dividend will be issued to shareholders.
The controversy surrounding John McGrath stems from media speculation that McGrath is in debt to gambling company William Hill Australia to the tune of $16.2 million. John McGrath has denied this.
Shares in the real estate company dived to a record low of $0.42 on Tuesday after three board members resigned from the embattled company. It listed in 2015 at $2.10.
The departure of chairman Cass O'Connor and non-executive directors Elizabeth Crouch and Cath Rogers leaves founder and 26 per cent shareholder John McGrath as the company's only remaining board member.
CEO Cameron Judson and the entire McGrath board will be out the door by close of business on Friday and John McGrath says he will take on the chief executive and chairman roles.
Business News Australia
Author: Ben Hall