ReadCloud CFO Luke Murphy Named Interim CEO After Three Years of Transformation

ReadCloud marks a leadership handover built on three years of financial and operational transformation

ReadCloud Limited (ASX: RCL) has announced that Chief Executive Officer Andrew Skelton has elected to conclude his role effective 31 May 2026, following a three-year tenure during which the company underwent significant financial and operational change. The ReadCloud CEO transition is an orderly, planned handover, with Chief Financial Officer Luke Murphy appointed Interim CEO from 1 June 2026. Skelton will provide consulting services for three months from 1 June 2026 to support continuity of knowledge, relationships, and strategic workstreams.

ReadCloud operates a proprietary eBook platform and VET-in-Schools services, partnering with over 400 schools across Australia and internationally.

The scorecard — what three years of transformation delivered

Skelton joined ReadCloud in May 2023 at a point when the business required, in the Board’s words, “strategic clarity and financial discipline.” The company exits his tenure operationally self-funding, generating positive EBITDA, and having completed the deliberate exit from industry training, a decision the Board characterised as difficult but strategically necessary.

The performance metrics across FY25 and into 1H FY26 provide the clearest measure of what was built:

• Australian direct eBook sales: up 17% in FY25
• VET-in-Schools auspicing revenue: up 29% in FY25
• 55 new schools added across both divisions in FY25
• Customer retention: 91–92% in FY25
• Record quarterly cash receipts (schools businesses): $5.2 million in the March 2026 quarter, up 28% on the prior corresponding period
• Group operating cashflow: $2.3 million for the March 2026 quarter

These are delivered results, not projections. The 91–92% customer retention rate, combined with accelerating cash receipts growth, validates the stickiness and scalability of the model heading into the leadership change.

Chairman Cris Nicolli

“On behalf of the Board, I want to acknowledge Andrew’s significant contribution to ReadCloud. He joined a business that needed both strategic clarity and financial discipline, and he has delivered both. Andrew has transformed the culture to one focused on ‘the customer’, and in doing so has achieved improved cashflow such that the company is now operationally self-funding, led the achievement of strong revenue growth and delivered positive EBITDA.”

Who is Luke Murphy, and what does the transition mean for investors?

An Interim CEO appointment in a listed company context means the Board retains full governance oversight while a formal permanent search runs in parallel. The business continues operating under an experienced internal leader, preserving institutional knowledge and avoiding any operational gap.

In this case, that internal leader is far from an unknown quantity. Murphy has served as ReadCloud’s CFO since 2017, placing him at the centre of the financial rigour and capital discipline credited with the company’s improved performance over the past three years. His familiarity with the business, its operations, and its stakeholders reduces transition risk materially. Murphy has also indicated his desire to apply for the permanent role.

His incremental compensation for the Interim CEO role is $5,000 per month, inclusive of superannuation, reflecting the increased workload and responsibilities.

In connection with Skelton’s departure, the following incentive and termination arrangements apply:

1. No FY26 short-term incentive (STI) payable
2. No FY26 long-term incentive (LTI) payable
3. The Board has determined Skelton is a “Good Leaver” under the Company’s Employee Incentive Plan
4. Vesting of 2,463,878 Zero Exercise Price options (granted 4 April 2025, expiring 31 March 2028) has been deferred, with vesting subject to the Absolute Total Shareholder Return performance condition over the 3-year measurement period concluding 30 September 2027

The “Good Leaver” classification and deferred vesting, rather than forfeiture, signals the transition is amicable and structured, reducing headline governance risk for investors.

Andrew Skelton, outgoing Chief Executive Officer

“ReadCloud is in the strongest position it has been in since I joined. The business is generating cash, growing, and retaining customers at a high rate. We have a clean two-division structure, an outstanding team, and credible plans to execute from here. The work of the last three years — the cost discipline, the strategic focus, and the difficult but right decision to exit industry training — has created a business that is genuinely well placed. I am proud of what this team has built, and I leave with complete confidence in ReadCloud’s direction and its people. Above all, I thank the ReadCloud team. Their commitment, creativity, and resilience have been the foundation of everything we have achieved. I look forward to watching the next chapter unfold.”

What comes next for ReadCloud

The Board has commenced a formal CEO search process and will update the market once an appointment is finalised. The search is focused on identifying a leader capable of building on the existing foundations and capturing the company’s growth opportunities, though no candidates or timelines have been disclosed.

The incoming CEO will inherit a clean two-division structure: the proprietary eBook platform and VET-in-Schools services. Importantly, ReadCloud enters this search period operationally self-funding, growing across both divisions, and retaining customers at rates above 91%. The business fundamentals are not in question as the transition unfolds.

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