EML Payments targets double-digit revenue growth under new leadership
EML Payments (ASX: EML) recorded a vastly improved financial performance on all key metrics in the 2024 financial year.
Group chief executive officer Ron Hynes told shareholders that many long-term structural obstacles and challenges had been addressed over the course of FY24.
Mr Hynes, who was appointed to his role in July after a lengthy search as part of a board restructure, said these efforts had strengthened EML’s foundation and put the company in a strong position to reshape itself as a payments industry leader and return it to double-digit transaction revenue growth.
‘Value proposition’
“What I knew coming into EML was that I was joining a resilient organisation with a compelling value proposition and a track record of success solving complex money flows at the intersection of business, government and consumer needs,” Mr Hynes said at a company presentation.
Mr Hynes noted that the company’s revenue increased 18% to $217.3 million for its continuing business, driven by both customer revenue growth and treasury yield performance on float balances.
The EML group also recorded a 54% increase in underlying EBITDA to $57.1m, at the top end of the guidance range of $52m to $58m.
Mr Hynes noted that the company had benefited from the sale of its Sentenial business for $53.4m in September.
“Our balance sheet is in a much healthier position following the sale of Sentenial and the refinancing of our debt facilities,” he told the gathering.
2.0 strategy
Mr Hynes also highlighted the company’s new EML 2.0 strategy, unveiled today.
“Our strategy is built upon three growth pillars supported by three core enablers, all of which will guide our path forward.”
“Our first priority is to nurture and grow our core—the underpinning of our success will be led by our more than 1,000 existing customers.”
“By deepening our relationships, we will ensure they continue to trust us with their customers and enable us to work with them to unlock new revenue opportunities.”