EML Payments (ASX:EML) Ltd has given CEO and MD Ron Hynes his marching orders, effective December 21, 2024, a move that has put the company’s share price over 20% to the red.
The board determined that new leadership was necessary to advance the company’s medium-term strategy, known as EML 2.0. Hynes will receive a six-month notice period but will not be eligible for equity grants due to his departure before the vesting dates.
The leadership transition aligns with EML’s focus on its strategic objectives, reaffirmed at the 2024 Annual General Meeting on November 26.
EML also maintained its FY25 guidance for underlying EBITDA in the range of A$54-60 million.
Anthony Hynes, the current independent non-executive chair, will assume the role of executive chair effective December 23, 2024.
With extensive experience in global payments businesses and recent familiarity with EML’s operations, Hynes will support the company’s leadership team in building a high-performance culture.
Turning the business around
Hynes has a lot of work to do and emphasised the significance of 2025 in executing the EML 2.0 strategy and driving growth in the payments sector.
“Our energised, passionate and broadened leadership team is building momentum, and I’m excited to lend them my further support as we work hard to build a high-performance culture and make 2025 a formative year for EML,” he said.
“I love the payments industry having dedicated a significant part of my professional life to it and the upside for EML following the successful execution of our strategy is significant.”
In January, EML liquidated its Irish subsidiary, PFS Card Services Ireland, citing the business as “no longer commercially viable and sustainable”. While the subsidiary was solvent, it was expected to incur a $20 million loss for the most recent financial year.
The company has also faced various internal and external challenges, including the conclusion of its UK subsidiary PFSL’s regulatory remediation program and the settlement of acquisition-related liabilities for PFS.
Additionally, EML finalised the sale of Sentenia, including its Nuapay services business, to GoCardless in September, achieving an enterprise value of €32.75 million AU$54,638.
EML Payments is a global payments provider with operations across Australia, the UK, Europe and North America.