Monash IVF chief to exit

Monash IVF is searching for a new chief executive after announcing that James Thiedeman would be resigning after eight years in the job. Thiedeman presided over the company's listing on the ASX in 2014, as well as a controversial dispute with clinical staff, who expressed concern over the resignation of two senior embryologists and a culture that could endanger patient care.

Overall, Thiedeman leaves the provider of assisted reproductive services in reasonable standing, with revenue falling 1% to $79m for the six months to December, though this was ahead of the overall market, suggesting Monash is increasing its market share. Net profit rose 9% to $15m thanks to a dip in financing expenses.

Thiedeman said he would stay with the company over the next six months to ensure a smooth transition to the next chief executive. Management expects net profit to increase in the 2017 financial year compared to 2016, though it hasn't offered specific guidance. Monash trades on a price-earnings ratio of 17 and a free cash flow yield of around 5%. With decent long-term growth prospects, economies of scale and plenty of cash flow, we continue to recommend that you HOLD.