26/07/2024 10:12

Emerging Companies Portfolio – Amendments

We are making several changes to the Emerging Companies Portfolio today, repositioning towards stocks we believe offer a better mix of quality and leverage to the themes we remain confident in

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28/02/2024 17:02

EML Payments (EML) $0.905

EML +7.74% the payments technology company was out with half-year results today with a choppy day for its shares following the update. Revenue was up 30% while EBITDA swung back into profit at $29.3m. The company recently put their embattled PCSIL business into liquidation, a move that draws a line in the sand for the embattled segment that has caused a myriad of compliance issues.

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18/01/2024 16:39

EML Payments (EML) $0.91

EML +22.15%: the payments tech company surged higher today after finally drawing a line in the sand with their PCSIL business which has been weighing on performance for some time. EML has brought in liquidators for the struggling unit, battling with regulators, client remediation and an outflow of expertise over the last few years.

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29/08/2023 16:37

EML Payments (EML) $0.98

EML +31.54% The troubled payments company delivered an update today that was well ahead of company guidance into a market that was ~6% short, and fireworks ensued! Revenue of $254.2m was up 9% and ahead the $239m expected driving an underlying EBITDA beat of ~20%. They are making progress on their strategic review and operational turnaround which has seen the stocks lift itself from the depths of despair. We have management in tomorrow and will provide additional colour from there.

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05/04/2023 09:24

EML Payments (EML) 52.5c

EML Payments has been a very disappointing position in the Emerging Companies Portfolio since we bought it in early 2021, however, it showed signs of life this week with a strong ~30% rally. It came following news of more restrictions from the Central Bank of Ireland (CBI) regarding their PFS Card Services business which has been under regulatory oversight for nearly 2 years.

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22/02/2023 16:52

EML Payments (EML) 58c

EML -9.38%: the half-year result for the payment solutions business was a tough one as regulatory pressure weighed on performance. Revenue was up 2% to $117m, a 5% miss, while EBITDA halved to $13.4m vs consensus at $15.8m.

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30/11/2022 09:17

EML Payments (EML) $0.68

The payments company hosted their AGM this week, with a number of key points coming forward that we believe justifies holding our position in the maligned stock. First and foremost, the Chairman was moved on following investor backlash. While not the sole reason for the underperformance, he, along with the previous CEO, skittled potential takeovers while the business was going backwards. On the operational front, there are signs of life. While regulatory caps remain in place with their reloadable cards business, Gross Debit Volume (GDV) which measures the volume processed through the group still managed to rise 8%. Open Banking has also continued to grow with a monthly revenue run rate of $6m in October, +50% in just 6 months. Higher interest rates are also benefitting income with interest expected to reap an additional ~$10m in FY23, around double vs FY22. While costs are up on the back of additional compliance and regulation, we see plenty of low-hanging fruit in the business to continue to drive growth, and at just, ~15x PE the market isn’t giving it much of a chance.

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31/10/2022 16:49

EML Payments (EML) 40.5c

EML -35.71%: the payment solutions company slumped to a near-10-year low today after further struggles with European regulators. This time the UK has taken action to stop the company from onboarding any new customers to their Prepaid Financial Services business in the UK on similar issues that the company is working with the Central Bank of...

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14/09/2022 09:27

Emerging Companies Portfolio

The portfolio was up +7.72% in the week, outperforming the S&P/ASX Small Ords index which rallied +4.06%.  Cash in the portfolio fell to around 5% after we added Sandfire Resources (SFR) to the portfolio. The Copper miner was one of the standout performers in the week, rallying 16% since our purchase. Also supporting the outperformance was a 19% rally in lithium miner...

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31/08/2022 09:32

Emerging Companies Portfolio

The portfolio was up +1.80% in the week, strongly outperforming the S&P/ASX Small Ords index which fell.  Cash in the portfolio is sitting at around 9%. Strength in  Paladin (PDN) +20% and Lovisa Holdings (LOV) +18% drove the performance, more than offsetting weakness in Aussie Broadband (ABB) -15% and EML payments (EML) -9%. The portfolio was also supported by dividends from Bapcor (BAP) and Pinnacle Investment (PNI).

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