Fintech EML Payments [ASX:EML] sank following the abrupt departure of CEO Tom Cregan.
Tom Cregan, who worked at EML for over a decade, has resigned without a given reason.
EML has appointed Emma Shand as managing director and CEO.
EML shares dropped 20% on Monday following the news, execerbating the fintech’s losses. Over the past 12 months, EML is down 70%.
Source: Tradingview.com
EML presents replacement CEO
Following Tom Cregan sudden resignation, EML has announced his replacement — Emma Shand.
EML praised the incoming CEO, with Chairman Peter Martin describing Shand as someone with ‘an ideal set of attributes to lead the company into the future.’
Shand’s experience includes working for more than 16 years in senior management roles at Nasdaq.
Shand joined EML in September 2021 as a member of the board of directors.
EML chair Peter Martin commented on Shand’s appointment:
‘Ms Shand has deep executive experience in a broad variety of operating and technology environments and diverse cultural settings.
‘She has worked with highly regulated markets, governments and disruptive companies across a variety of sectors. In light of EML Payment’s significant European business, Ms Shand will dedicate substantive time and presence in Europe.’
The company didn’t specify what had prompted Cregan’s resignation but did share a ‘real vote of thanks’:
‘We all owe a real vote of thanks to Tom Cregan who has been an integral part of the EML growth story for over a decade. He has tirelessly led the Company from a small technology business in Australia to a diversified payments leader operating in 32 countries.
‘EML has been an exciting growth story of rapid international expansion, not without its challenges. Without Tom’s deep payments knowledge, drive and commitment, EML would not be what it is today.’
CEO departure adds to uncertainty
A sudden CEO exit sending the stock lower…
EML’s 20% drop on Monday echoes the recent departure of ASX lithium hopeful Lake Resource’s managing director Stephen Promnitz.
Equally abrupt, Promnitz’s departure sent investors guessing…and fearing for the worst.
Lake Resources [ASX:LKE] shares are down 50% in the last month alone.
Why did Tom Cregan leave EML? Was this a planned transition?
EML offered no further detail on the matter, adding to the uncertainty.
Investors may also have picked up on EML’s focus on its Europe segment, with the Board noting new CEO Emma Shand will ‘dedicate substantive time and presence’ in Europe.
Will Shand’s responsibilities include smoothing over any lingering concerns the Central Bank of Ireland may have regarding EML’s subsidiary PFS Card Services?
A substantive focus on Europe is understandable for EML: in its most recent half-yearly report, EML stated that around 65% of its global revenue generated from that segment.
Now, while the fintech sector has been hit hard as investors flee risk-on assets, a sector that still has strong headwinds is battery tech.
Yes, lithium stocks have been bid up plenty in 2021 and are now in a correction, but the battery tech theme isn’t all about vlithium.
Our small caps expert Callum Newman recently put together a unique report on three battery tech stocks he thinks are next in line to be ‘Tesla’s chosen ones’.
And to power them, we’ll be needing a surplus of battery materials.
To find out more about Callum’s thesis, read ‘Elon’s Chosen Ones’ here.
Regards,
Kiryll Prakapenka,
For Money Moring
