Global payment solutions and financial services corporation EML Payments [ASX:EML] has lost its leader Emma Shand after nine months in the role, with Kevin Murphy immediately stepping in as the interim group CEO.
EML said this is the first of many changes slated to answer ongoing challenges, with investment banking advisor Barrenjoey to head a strategic review.
Earlier today, EML was bumped down nearly 2% by traders, dipping the stock’s value to 57 cents a share.
In the last week, EML climbed 5.5%, and almost 30% in the month. However, it underperformed over the last full year by 80%, and it’s considerably down in both its sector and the wider market average:
Source: tradingview.com
EML finds quick replacement for Shand
Chief Executive Officer Emma Shand is stepping down from her role today after serving merely nine months serving as head of management, yet she will remain employed with EML for a short transitional period ending 17 July 2023.
EML has appointed Kevin Murphy as the group’s interim group CEO, effective immediately, explaining that Mr Murphy is an experienced payment and business improvement executive.
Mr Murphy is a former Managing Director of Bank of Ireland’s cards business. He has had significant regulatory experience, participating in several successful business turnaround scenarios for private equity funds.
EML’s board has commenced the global recruitment process for a permanent group CEO, with Mr Murphy also under consideration.
Ms Shand’s departure, and the interim appointment of Mr Murphy as CEO, were described as ‘one of several new initiatives designed to reposition the EML business’.
Another initiative was the contracting of Barrenjoey to conduct a long-awaited strategic review of the business.
EML said that its board is resolved to tackle challenges still facing the business today, with key priories including remediation, cost optimisation, growth of core businesses and talent retention – especially as the company has lost significant senior members of staff quite recently.
Having been blamed for failed approaches from Bain Capital and Canada’s Nuvei Corp, ex-chairman Peter Martin was ousted at 2022’s AGM, while Ms Shand had replaced Tom Cregan, who also left the company quite suddenly in July last year.
EML’s actions have not impressed investors recently, with the loss of recent bids, not helped by The Financial Conduct Authority halting new customer sign-ups in the UK last October, an event which set the business back $5 million.
Mr Bortoli remarked:
‘The renewed Board has spoken with internal and external stakeholders and formed a view on the urgent priorities for the business. We are focused on doing the right thing by our people, customers, regulators and shareholders and we are committed to taking actions that will help the business move through its immediate challenges, deliver sustainable growth in the medium to long term and maximise value for shareholders.’
Jim Rickards’ ‘Sold Out’ book offer — grab your copy now
There are gaps on supermarket shelves.
Banks have been permanently closing more and more branches.
Used car prices are rising, and speedy delivery seems a thing of the past.
Prices in general are skyrocketing, yet packaging is shrinking.
Is it all just inflation, COVID ramifications and market volatility, or is there more to the story?
The thing is, these are just some of the seemingly unrelated signs pointing to something bigger.
Mere ‘inconveniences’ are just the start.
Geopolitical expert Jim Rickards has been making very apt, on-point predictions for decades.
And now he’s predicting ensuing financial chaos — yes, more so than there is right now.
He explains it all, offering a unique perspective that should not be ignored, in his book, SOLD OUT: How Broken Supply Chains, Surging Inflation, and Political Instability Will Sink the Global Economy.
You can grab a free copy when you sign up for The Daily Reckoning Australia, also free, right here.
Regards,
Mahlia Stewart,
For The Daily Reckoning
