Start off with what we know are biggest Problems/negatives – Acquisitions been nightmare with both PFS and Sentenial both had regulatory issues. There’s been no or little effort in the remediation process with the Central Bank of Ireland. https://www.asx.com.au/asxpdf/20230224/pdf/45lzt24m6gc7l5.pdf Regulatory issues likely to impact the amount EML can grow and its compliance cost for the foreseeable future.
Positives – What needs to happen make EML investable again!!!
First steps been taken we have a new CEO and new board. Alta Fox has recently brought in a major stake in the business and looks to have at least one seat on the board. Connor has stated publicly he’s been actively been looking for overlooked stocks that will benefit from interest rates increasing. Not sure if that’s only reason EML has appealed to Alta Fox. EML should benefit as interest rates rise due to the float it carries. Below summary of the new director’s background and current holdings.
Current Directors
Dr Luke Bortoli (Chairman) Effective 22/02/2023 was CFO of global payments platform, Afterpay. He was with the company from 2018 to 2021 during which time the company scaled from a small-cap start-up to a globally recognised market leader. Prior to Afterpay, Dr Bortoli held various senior executive roles at Aristocrat (2015 – 2018). Effective 22/02/2023.
Peter Lang (Non-Executive Director) Effective 22/02/2023. - is a veteran payments expert, previously Group Executive at ASX-listed McMillan Shakespeare Ltd (MMS). Mr Lang was part of the management buyout team who went on to IPO MMS and deliver 30%+ CAGR during his 14-year tenure leading to the Company's admittance into the ASX200. Mr Lang’s provision of advisory services to EML in 2017 was instrumental in EML’s capture of 90%+ of the Australian salary packaging payment card market which represents a significant earnings vertical for EML today. Announced 24 Feb 23 Peter Lang will be in charge of the sub committee to oversee remediation program with CBI.
Brent Cubis (Non-Executive Director) Appointed 06/02/23 is currently the Non-Executive Director and Audit and Risk Committee Chair for A2B Australia Limited (ASX: A2B), Silverchain Group, Carbon Cybernetics, and leading youth cancer charity, Canteen Australia. His previous roles have included CFO of Cochlear Limited, CFO of Nine Network Australia and Non-Executive Director and Chair of the Audit and Risk Committee of Prime Media Group Limited.
Manoj Kheerbat (Non-Executive Director) Appointed 05/12/22 - he brings to EML, deep insights from 20+ years’ experience working in UK and European payments ecosystems. Mr Kheerbat is European based, which reflects EML’s significant presence in Europe and the UK. He has a wealth of experience managing regulatory relationships, risk and compliance frameworks, and building structured, robust and scalable operational infrastructure to support growth.
Emma Shand CEO effective 11/07/2022 - is a seasoned executive and multi- disciplinary leader having worked at the intersection of technology, financial services and capital markets for 25 years across Asia Pacific, the US and EMEA. She has deep experience of different operating and technology environments and diverse cultural settings in a career which includes over 16 years with US based market leader Nasdaq.
Connor Haley (Nominee Non-Executive Director) - is the Managing Partner of Alta Fox Capital Management, the second largest shareholder of EML. Advise Nomination 22/02/23. Haley founded Alta Fox in 2018 after working at Scopia Capital Management, a New York-based alternative asset management firm.
No longer on Board David Liddy, Melanie Wilson, Tony Adcock
Current Market Cap $179.5m
Inside Ownership Ordinary Shares % EML Issued Net Value at $0.48
Luke Bortoli 0 0 0
Peter Lang 861,427 0.23% 413K
Brent Cubis 0 0 0
Manoj Kheerbat 0 0 0
Emma Shand 0 0 0
Connor Haley (Alta Fox) 38,353,640 10.25% $18.4m
I use to hold EML shares and I have been intrigued by Alta Fox’s quick entry into EML. Currently have no plans to buy shares and I happy to watch from the sidelines for now but if we were to see the regulatory issues finally resolved and the new board buying shares on the market, I could see room for EML in my portfolio as a turnaround special situation stock. As you can see from table above the new board holds very little or no stock at all currently. For now, it’s a watch and wait, maybe it be a takeover target, it current stock price in my opinion is very under demanding or maybe continue to disappoint!!
