The recent roller coaster ride for EML Payments' (ASX: EML) shareholders continued this morning following the surprise resignation of long-standing CEO Tom Cregan.
The share price gave back more than last week’s 10% gains on the back of the prepaid card payment company’s announced major deal with Spain’s national post office.
EML’s share price was down -21.33% at noon following revelations that Cregan, whose been with the company for over a decade, will be replaced immediately as managing director and CEO by current EML board member Emma Shand.
Cregan will receive his contractual entitlements and his equity will be treated in accordance with the terms of grant, but no termination benefits will be provided.
In light of EML Payment’s significant European business, Shand is expected to spend a lot of time on the ground in Europe.
Commenting on Shand’s appointment, Peter Martin, EML’s Chairman noted:
“Ms Shand is a very successful executive with 25 years’ global experience in technology, capital markets and diversified financial services across 30 different countries."
During a third quarter (Q3) trading update released late April the company noted that while Australian and North American were businesses trading in line with expectations, European Prepaid business operating performance was still being impacted by remediation activities.
As a result, earnings (EBITDA) guidance for FY22 was reduced by around -8% to $52m-$55m.
Highlights of Q3 updated included:
23 contracts signed; 90 contracts signed YTD
131 programs launched YTD, including 74 in Europe
Entre into the $30bn European Employee Benefits Market
Continued progress on CBI remediation toward 30 June 2022 completion date
EML benefits as interest rates rise due to the company’s large Stored Value Float
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