She said last week's guidance update,which sent the share price plunging 46 per cent over the four days following the announcement,led the board to request improved processes and controls,as well as improved resourcing around forecasting and expense management.
"Your board will regularly review management's progress in making this capability uplift,and we expect substantial uplift by the end of third quarter of FY20,"she said.
Last week,UBS maintained its"buy"recommendation on the stock,but said it was surprising that it took until November to realise that the half-year performance was well behind prospectus forecasts.
“We believe this downgrade highlights that Prospa has lower earnings visibility than we previously thought.”