Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Can EML Payments overcome European challenges with new CEO?

EML Payments has seen the resignation of CEO Emma Shand as it mulls a shift in long-term strategy. Interim CEO Kevin Murphy is well-positioned to help it deal with regulatory challenges in Ireland.

Source: Bloomberg

The share price of ASX-listed fintech company EML Payments (ASX: EML) faces uncertainty following the departure of CEO Emma Shand, just 10 months after her appointment to the top position.

Shand's resignation arrives just as EML commences a strategic review of its business, with potential outcomes including the sale of part or all of the payment company's operations.

EML could benefit, however, from the appointment of a veteran of the Irish banking sector to the position of interim CEO, given its recent disputes with the Central Bank of Ireland.

Shand resigns amidst operational transition

On 17 April, Emma Shand stepped down from her role as EML CEO, citing a 'change in operational priorities' as the reason for her resignation.

On the same date, EML appointed Kevin Murphy as Interim Group CEO, as well as kicked off a global search for a permanent replacement for Shand.

In a statement, EML said the changes to its top executive arrived amidst efforts to realign its business.

These efforts include the appointment of Barrenjoey, a partner of Barclays, to conduct a strategic review of EML's operations. According to EML, the review will 'consider all options,' including a sale of operations to 'maximise shareholder value.'

Following its reconstitution on 22 February 2023, EML's board undertook an internal review of its business, concluding that strategic initiatives were needed to deal with the challenges facing the payment company.

EML reported a sharp drop in profits for the first half of FY23, with earnings before interest, taxes, depreciation and amortisation (EBITDA) dropping 50% year-on-year (YoY) to $13.4 million.

EML imputed the earnings decline to efforts to expand into Europe that incurred heavy overheads.

On 17 April, EML announced that its board had resolved to transition away from the long-range strategy previously announced at its November 2022 AGM, to instead focus on four key challenges.

These challenges include remediation efforts in relation to Irish and UK regulators; enterprise-wide cost optimisation, unlocking growth in its more profitable core businesses, and talent retention following the recent departures of key personnel.

Interim CEO could help overcome Irish regulatory challenges

One of the biggest challenges EML currently faces is a regulatory dispute in the Eurozone – one of the key regions targeted by the company for expansion.

In February, EML announced that the Central Bank of Ireland (CBI) was considering sterner penalties for the company due to dissatisfaction with its remediation progress.

According to the statement made on 24 February, EML's Irish subsidiary PFS Card Services Ireland Limited (PCSIL) had received correspondence from CBI stating that 'it is not satisfied with PCSIL's remediation plan and timetable for completion.'

CBI informed PCSIL that it is 'minded to issue a direction' for growth in total payments volumes for the period from 31 March 2023 to 30 March 2024 to be restricted to nil above annualised baseline volumes in 2022, as compared to the previous 10% growth restriction slated for imposition until 8 December.

Interim CEO Kevin Murphy may be well-positioned to help EML deal with the major hurdle for its Eurozone expansion plans.

Murphy is an Irish national as well as a veteran of the Irish banking sector, who has significant regulatory experience with the CBI. He is also a former Managing Director of Bank of Ireland (cards business) – one of the country's big four commercial lenders.

Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.* Learn more about share CFDs or shares trading with us, or open an account to get started today.

* Winner of 'Best Multi-Platform Provider' at ADVFN International Finance Awards 2022


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on stock opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.