Staging something of a comeback after fielding recent shareholder calls for the business to be sold, EML Payments (ASX: EML) was up around 12% in afternoon trading to $0.96 - its highest level since last December - after posting a better than expected 1H FY25 result.
What captured the market's attention today was the global payments company's reported 15% revenue increase to $115.1 million and 50% earnings growth to $33.4 million.
EML's chairman Anthony Hynes attributed the company's improving financial metrics to growth in both customer and interest revenue, a focus on efficiency and market expansion, organisational restructuring and expansion into new markets.
Hynes told investors that much of the company's focus is on laying the building blocks for EML 2.0 starting with cementing the leadership group and organisational structure simplification across the business to realise synergies; with good progress made in this key area over the last two months.
"The business is in a much better cadence and is focused on operational efficiency, customer relationships, growth and empowering our people to be their best under a one EML ethos. We are working rapidly to remove the inefficiencies caused by minimal integration of our global businesses over the last five years.”
“Our Commercial team is building momentum, and we have welcomed marquee brands to EML in recent times."
During the half statutory net profit improved from a loss of $4.7 million in the previous period to a profit this half of $9.5 million.
While Wilson Asset Management recently increased its stake in EML from 8.6% to 9.7%, QVG Capital is also a substantial holder with a 5.7% stake.
The stock remains 84% down on its $5.75 peak in April 2021.
EML Payments has a market cap of $360 million; the share price is up 12.5% in one year and is up 13% year to date.
The medium-term picture for the share price appears solidly higher, with the 5-day moving average above the 50-day moving average, while other indications are mixed.
Consensus is Moderate Buy.
This article does not constitute financial product advice. You should consider independent advice before making financial decisions.
