Horse racing operator Phumelela Gaming & Leisure has named Moses Tembe as new chair, replacing Investec co-founder Bernard Kantor with effect from Tuesday.

Tembe joined Phumelela in August 2018 as lead independent director, and has also served on the boards of various JSE-listed companies, including Mr Price, Santova and Beige Holdings.

Kantor, who has been a nonexecutive director since Phumelela was founded, took over from Peter Malungani in December 2017.

The move comes after Phumelela said its year to end-July was the “worst in its history,” as it posted a R332.4m loss for the period.

The company has said it urgently needs fresh capital, having  opted not to declare a final cash dividend to end-July.

It has warned of further cost-cutting even after retrenching 15% of its workforce, saying it has been hobbled by regulatory changes and weak economic conditions in SA.

Since the beginning of 2018, Phumelela’s share price has fallen 88.57%, giving it a market capitalisation of R205m on Wednesday morning.