Lots to read through and yes it reads like a typical C Suite Presentation
Negative
- Further investment for remediation and looks like end of CY 2023
- limited establishment fee income as UK is on pause and EU limited by 10% growth cap
- slowing revenue although still growing, need to remember actual revenue for FY 22 was $216m +$18m of non reoccurring
- cost base growing and savings of 10-15% don't' fully take effect until FY24/25
- Fair amount of work to be done in integrating past acquisitions which is time consuming
- No transparent $ figure on Sentenial fraud event as it was wrapped up with a few other items incl. redundancies and retention bonuses.
- Buy back cxl, will they continue to target more smaller acquisitions, possibly in Aus or US which have unrestricted growth
Positives
- G&I segment up circa 30% @ 400-500 bps margin (Comparison would be GPR segment achieving another $20-25m in revenue at 100 bps)
- EML can't earn any interest on EU float whilst remediation is happening (was a footnote on page 24). This is circa 30% of the $2.2B float (1% EU central bank rate = $6m) so technically they are currently missing out on additional $10m in FY23 which will come back in FY24 and will grow to say $15m-$20m as EU increases to mid 2% mark. Total interest rate should be $30m in FY23 and circa $40-$45m in FY24
Sentenial open banking needs to hit $40m in revenue and $20 in
- Company shift to embedded finance and away from solely pre paid cards which should reduce the AML/CTF red flags
- EBIT for 12 months to 31st Dec 2023. They are currently on a run rate of $6m (up from $4m) so if they don't achieve then we save $70m earn out.
- Smart Group re signed NSW Health contract on Friday until 2028 (SIQ announced on Wednesday) which is a big client of EML Salary packaging business (circa $2b GDV segment)
- Looks like our mate Ron was please with Chairman exit although so to was the AFR and other trade articles
Last point here, TYR is currently valued at $815m and their FY23 revised upgraded guidance is the same as EML's revised numbers yesterday. Based on this EML should be circa $2 on same valuation but until regulatory issues are fixed or post xmas trading figures announced it will trade at heavy discount
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- Ann: Chairman and CEO AGM Presentation Slides
Ann: Chairman and CEO AGM Presentation Slides, page-36
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64.5¢ |
Change
0.045(7.50%) |
Mkt cap ! $243.2M |
Open | High | Low | Value | Volume |
60.5¢ | 65.5¢ | 60.5¢ | $1.108M | 1.739M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 12534 | 64.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
65.0¢ | 26324 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 12534 | 0.640 |
2 | 49370 | 0.635 |
3 | 52534 | 0.630 |
3 | 72534 | 0.625 |
2 | 16301 | 0.620 |
Price($) | Vol. | No. |
---|---|---|
0.650 | 26324 | 3 |
0.655 | 45763 | 4 |
0.660 | 19212 | 7 |
0.665 | 55137 | 5 |
0.670 | 142048 | 5 |
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