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Why has this ASX materials share plummeted 28% today?

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The SciDev Ltd (ASX: SDV) share price is having a woeful morning on the ASX following a company announcement.

At the time of writing, the chemical engineering company’s shares are down a sizeable 29%, trading at a multi-year low of 28 cents. In comparison, the All Ordinaries Index (ASX: XAO) is tracking 0.79% higher at 7,703 points.

What did the ASX materials share announce?

Investors are selling off SciDev shares following an unexpected announcement regarding its most senior leader. SciDev advised that its CEO and managing director Lewis Utting has tendered his resignation due to personal reasons.

SciDev commercial director of water services Sean Halpin has been appointed to the top job in the interim.

SciDev chair Vaughan Busby said:

The Board thanks Lewis for his leadership, commitment and hard work transforming and growing the company from a start up to where it is today.

We understand and respect Lewis’ decision to resign so he can focus on family matters. Over the next few months, Lewis will be available on a limited basis to assist with the transition.

While the sudden notice has rattled shareholders, SciDev said that it would begin its search for a new permanent CEO.

Adding to today’s losses, the SciDev share price has fallen almost 70% over the last 12 months.

Since reaching a 52-week high of 97.5 cents in mid-2021, the ASX materials shares have been on a downward trend.

The company commands a market capitalisation of roughly $52.5 million based on today’s price.

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