EML Payments (EML) hammered after Irish regulator follow up
EML -14.59%: The card and payments company struggled today after the Central Bank of Ireland responded to their remediation and growth plans. Issues with the PFS Card Services business came to light earlier in the year, a business EML only acquired back in late 2019. Following the CBI concerns, EML presented a remediation and business proposal to CBI who have now raised concerns with the extent of the remediation and their push to continue to grow in the face of further regulation. EML have managed to save a few pennies on the way – around $100m in payments related to the performance of PFS after the purchase. The market cap of EML has almost halved since the initial announcement, with the impact looking to add up to less than 20% of revenue for the business, we think the sell-off is overdone.
