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EML Payments Ltd

EML Payments Ltd

ASX:EML

Financials

Fund Manager Summary

The fund managers believe that EML Payments Ltd presents a strong turnaround opportunity following recent strategic decisions. With the exit from the problematic PCSIL subsidiary, EML has effectively eliminated a significant drain on profitability. The sale of Sentenial further strengthens their financial position, allowing for debt reduction and the establishment of a cash buffer. In their opinion, focusing on core profitable businesses such as Australian and Global Gifting and the successful UK arm of PFS (PFSL) positions EML for growth. Analyst projections indicate significant upside based on future earnings, and the management's active implementation of a turnaround strategy emphasizes cost reduction, margin expansion, and core business growth. Overall, the streamlined operations and clear path to profitability make EML Payments a compelling investment opportunity.

Source: Trading View

Commentary From The Managers

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DMX Asset Management

30 Sept 2025

$1.00

Summary

  • EML Payments Ltd has shown signs of recovery with new leadership in place.
  • The company has exited non-core and troublesome operations, allowing for a clearer focus.
  • DMX Asset Management notes a refocus on organic growth as a positive development.
  • Shares have been reflecting these improvements, with some consolidation observed in September.
  • Full-year results were deemed satisfactory, but lack strong evidence of organic growth.
  • Considering the long sales cycles, there is potential for upside surprises as revenue wins materialize.
  • DMX Asset Management continues to hold EML Payments Ltd, anticipating revenue growth in the coming years.

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Commentary From The Managers

DMX Asset Management

30 Sept 2025

$1.00

  • EML Payments Ltd has shown signs of recovery with new leadership in place.
  • The company has exited non-core and troublesome operations, allowing for a clearer focus.
  • DMX Asset Management notes a refocus on organic growth as a positive development.
  • Shares have been reflecting these improvements, with some consolidation observed in September.
  • Full-year results were deemed satisfactory, but lack strong evidence of organic growth.
  • Considering the long sales cycles, there is potential for upside surprises as revenue wins materialize.
  • DMX Asset Management continues to hold EML Payments Ltd, anticipating revenue growth in the coming years.

Summary

Monash Investors

30 Sept 2025

$1.00

  • Monash Investors continues to hold EML Payments as a top investment.
  • Recent declines in payments-oriented positions, including EML, Findi, and Tyro Payments, have been noted.
  • EML Payments has shown signs of improvement due to new leadership and a focus on organic growth.
  • The company has exited non-core and troublesome operations.
  • Despite a recent consolidation in share prices, September results were considered fine by Monash Investors.
  • There is an expectation of potential upside surprises in revenue as sales cycles progress.
  • Monash Investors believes that EML has a good chance of achieving organic growth in the coming years.

Summary

QVG Capital

30 Sept 2025

$1.00

  • QVG Capital notes that EML Payments has faced challenges as investors recall that turnarounds take time.
  • The company benefits from sticky customers and predictable revenues, which provide management with essential breathing space.
  • Current efforts are focused on rebuilding the front-end sales engine, a crucial aspect that has been previously neglected.
  • While there is confidence in the turnaround, short-term competition from Gold, A.I., and Defence stocks poses challenges.
  • EML has seen only a slight softening in European interest rates, impacting float income minimally.
  • The recent share price performance reflects a lack of patience for a turnaround that is expected to take an additional 6 months.

Summary

Forager Funds

19 Sept 2025

$0.98

  • Forager Funds acknowledges EML Payments Ltd's littered history of challenges.
  • The fund continues to hold its position in the stock.
  • Despite past issues, there is a sense of optimism about the company's future.
  • A new management team is in place, aiming to improve performance.
  • The management has indicated they can keep the cost base flat while increasing revenue.
  • This strategy could lead to a substantial change in profitability over the next few years.
  • Forager believes this potential is not yet recognized by the market.
  • The fund thinks there is a viable path for the company to deliver on its promises.

Summary

Tamim Funds Management

31 Aug 2025

$1.09

  • EML Payments (ASX: EML) is undergoing a comprehensive transformation, focusing on rebuilding its commercial strategy and technological infrastructure.
  • The company has revitalised its leadership and sales capabilities.
  • EML has signed 27 new clients and established a global technology partnership with Visa Pismo to enhance payment capabilities.
  • Financially, EML achieved strong performance with total revenue of $221 million and EBITDA at the top of guidance at $58 million.
  • The consolidation of the Arlo platform is expected to reduce technology costs by $12 million while enabling multi-product, multi-currency offerings.
  • Strategic focus is on organic growth with a disciplined approach to pipeline management and customer acquisition.
  • The sales pipeline has grown to $66 million as of June, with a $90 million target on track for December.
  • The leadership team prioritises operational efficiency, global integration, and technology modernisation.
  • Future plans include potential debt reduction and continued investment in the Arlo platform.
  • Upcoming catalysts include the AGM and February results updates on pipeline conversion of new sales.
  • A positive update could lead to a significant re-rate for the stock towards a $2.00+ valuation, indicating 100%+ upside.

Summary

DMX Asset Management

31 Aug 2025

$1.09

  • EML Payments reported revenue and underlying profit growth in-line with guidance and market expectations.
  • Shares remained flat for the month, but confidence in EML 2.0 objectives is increasing among investors.
  • After a challenging period, EML has resolved many legacy issues, including divesting non-core divisions and settling liabilities.
  • The company is now refocused on growth and profitability.
  • EML is expanding its sales pipeline, with a target increase from $66m at 30th June to ~$90m by 31st December.
  • Growth is expected to better utilize operating infrastructure, leading to disproportionate gains to the bottom line.
  • Aiming for a 13c EPS target by 2028 could render the current share price very attractive.
  • EML’s assets are becoming prime targets for private equity and strategic suitors, potentially leading to greater value extraction.
  • DMX Asset Management continues to hold because of the potential for material growth and further market re-rate.
  • We look forward to monitoring progress in the year ahead.

Summary

Endeavor Asset Management

31 July 2025

$1.13

  • EML Payments (EML) experienced a 3.4% decline in share price.
  • Endeavor Asset Management remains confident in EML's FY28 strategy.
  • Upcoming FY25 results are anticipated following successful rebasement of the business.
  • EML is now positioned to focus on sustainable growth after overcoming regulatory and operational challenges.
  • Recent partnership with Pismo (a subsidiary of Visa) aims to consolidate multiple processing platforms.
  • This initiative marks the first step in the EML 2.0 direction, covering Australia, North America, UK, and Europe.

Summary

Tamim Funds Management

30 June 2025

$1.17

  • EML Payments (ASX: EML) has reached an in-principle agreement to settle the shareholder class action proceeding.
  • Settlement amount is set at $37,356,125, which includes interest and costs.
  • The settlement is subject to the execution of a deed of settlement and approval by the Supreme Court of Victoria.
  • EML has made no admission of liability in this settlement.
  • The settlement will be funded by existing cash and debt facilities.
  • This resolution eliminates the last legacy issue the company faced, which was seen as a potential obstacle for any prospective acquirers.
  • With all legacy issues now resolved, management long-term incentives (LTIs) in place, and a new strategy gaining traction, Tamim Funds Management is confident that a takeover is only a matter of time.

Summary

Forager Funds

30 June 2025

$1.17

  • Forager Funds continues to hold EML Payments (EML) due to its valuable core business.
  • The company faced challenges with the departure of the former managing director shortly after announcing ambitious targets.
  • A new managing director, previously a non-executive board member, has taken charge and is focused on rebuilding the sales team.
  • The early urgency in execution is viewed positively by Forager Funds.
  • EML's business is now much simpler compared to previous complexities.
  • The ingredients for recovery are in place, though execution remains critical.
  • The share price has risen 26% for the financial year, reflecting increased expectations.

Summary

Endeavor Asset Management

31 May 2025

$1.10

  • EML Payments (EML) share price increased by 15.9% in May.
  • Endeavor Asset Management expects EML to continue to outperform over the next 12-24 months.
  • The transition from EML 1.0 to EML 2.0 is anticipated to attract new investors.
  • EML 2.0 is viewed as cleaner and offers better earnings growth stability than its predecessor.
  • At the current share price, EML is trading at less than 10x FY26 EV/EBITDA.
  • As the new executive and board team execute their strategy, Endeavor Asset Management expects EML's valuation to reflect its new business model.
  • Endeavor Asset Management continues to hold because they believe EML will be valued much greater than its current valuation.

Summary

DMX Asset Management

31 May 2025

$1.10

  • DMX Asset Management continues to hold EML Payments due to a lucrative Long-Term Incentive package agreed with its Executive Chairman.
  • The Chairman has invested approximately $3.5m in EML Payments by buying stock on-market in late 2024 and early 2025.
  • Over the past year, EML Payments has made significant improvements by shedding non-core assets and refocusing on growth.
  • Despite an abrupt CEO departure in December, strong results and the Chair’s significant on-market purchases have reassured the market.
  • The Long-Term Incentive structure indicates internal confidence in EML Payments' potential.
  • Renewed broker interest has contributed to a re-rating of EML Payments shares.
  • DMX Asset Management has increased their conviction and progressively added to their holding, reaching a full 5% weight in the portfolio.
  • Concerns were raised regarding aspects of the Chairman’s LTI, including its quantum, low hurdle, and share-price-based structure.
  • DMX Asset Management has shared feedback with other institutional investors and the company regarding the LTI.
  • The engagement on compensation issues is assessed on a case-by-case basis, reflecting the level of dissatisfaction and potential for change.
  • Overall, despite concerns regarding the cost of the LTI, the underlying developments are viewed positively, and EML Payments is positioned for future performance.

Summary

Jencay Capital

31 Mar 2025

$0.97

  • Centennial Asset Management believes Zip has the potential to rally in the short term.
  • Zip is well positioned to deliver further strong growth in revenues and profitability.
  • The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
  • New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
  • Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
  • Zip has surprised the market with better-than-expected earnings over the past year.
  • The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.

Summary

Oracle Advisory Group

31 Mar 2025

$0.97

  • Oracle Advisory Group initiated a 2.0% position in EML Payments.
  • EML Payments has overcome challenges from two ill-timed acquisitions during COVID.
  • The company has refocused on its core strengths.
  • Positive FY25 guidance at the AGM was followed by the unexpected sacking of the CEO in December.
  • The Chairman stepped in as CEO, bringing relevant expertise to lead EML forward.
  • The half-year result reaffirmed FY25 EBITDA guidance of AU$54–60 million.
  • Notable deal closures and progress on the EML 2.0 strategy were highlighted.
  • The market reacted positively, with share price rising above $1 (+19.8% contribution in February).
  • Oracle Advisory Group remains cautiously optimistic as 2025 approaches.
  • Broader economic uncertainty presents opportunities for acquiring high-quality businesses.
  • The focus remains on companies with strong cash flows, clear strategic direction, and resilience.
  • In response to economic uncertainty, Oracle added two gold producers to the portfolio.
  • These two companies comprise 5% of the portfolio.

Summary

Monash Investors

28 Feb 2025

$0.97

  • EML Payments rose 18% as the company refocuses and turns its fortunes around.
  • Market enthusiasm grew with the Executive Chairman purchasing $3m of stock on market post-result.
  • Monash Investors has been gradually rebuilding a meaningful stake over the past six months.
  • EML has faced challenging years but is now shedding non-core operations and cutting costs.
  • Management is focusing on organic growth to rebuild shareholder value.
  • What was less than a 1% position six months ago has been added to in the 60c and 80c ranges.
  • Post the December shock departure of its CEO, further additions were made.
  • With shares nearing $1, it is now a 4% weight in the portfolio.
  • Monash Investors believes EML is well-placed to benefit from positive operating momentum and potential share price rerating.

Summary

Endeavor Asset Management

28 Feb 2025

$0.97

  • EML Payments (EML) increased 17.6% following a cleaner 1H25 result
  • Company reaffirmed FY25 guidance and showed an improving outlook
  • Market responded positively to further details on the proposed strategy for achieving FY28 goals
  • Focus is on existing and new product verticals
  • Endeavor Asset Management believes the stock remains very cheap
  • Expect a re-rating as earnings quality improves
  • EML is set to execute on its building contract pipeline of $65 million by mid-2025

Summary

Tamim Funds Management

28 Feb 2025

$0.97

  • EML Payments (ASX: EML) has shown significant financial recovery and strategic repositioning in H1 FY25.
  • Reported a 15% revenue increase to $115.1 million and a 50% surge in underlying EBITDA to $33.4 million.
  • Transitioned from a net loss of $4.7 million to a net profit of $9.5 million, indicating improved profitability.
  • Key financial highlights include a 6% growth in customer revenue and a 49% increase in interest revenue.
  • Cash balance stands at $50.6 million, with a net improvement of $7.5 million in the half.
  • EML's strategic "2.0" transformation focuses on global operating model, reviving revenue, and deploying a single technology platform.
  • Leadership has made strides in restructuring and expanding the business development team.
  • Initiated Project Arlo to streamline operations and improve cost efficiencies.
  • Geographic performance varies: Europe up 30%, Asia-Pacific steady at 6%, North America down 7%.
  • EML aims to build a sales pipeline of $65 million by FY25 year-end and $90 million for the calendar year.
  • Management sees more growth opportunities in new verticals rather than new markets.
  • Executive Chair Anthony Hynes is committed to a "one EML" culture focused on efficiency and innovation.
  • Financial guidance remains at $54-60 million in underlying EBITDA for FY25.
  • Following the results, the Executive Chair acquired $3 million of shares, showcasing confidence in the outlook.
  • EML is at the start of a new growth phase, with potential for stock re-rating as management executes.
  • At an EV/EBITDA of 6x, there is good upside potential with high likelihood of takeover appeal.

Summary

DMX Asset Management

28 Feb 2025

$0.97

  • EML Payments rose 18% as the company continues to re-focus and turn its fortunes around.
  • The market’s renewed enthusiasm was supported by the new Executive Chairman purchasing $3m of stock post-result.
  • DMX Asset Management has been gradually building a meaningful stake in EML Payments over the past year.
  • The company has faced challenging years, but has proactively shed non-core operations and cut costs.
  • EML is focusing on organic growth to rebuild shareholder value.
  • A relatively small position six months ago has been increased in the 60c range, 80c range, and again on the dip after the CEO's departure.
  • With shares now approaching $1, EML has become a top holding for the Fund at a 4% weight.
  • DMX Asset Management believes they are well placed to benefit from further positive operating momentum and potential share price re-rating.

Summary

Endeavor Asset Management

31 Dec 2024

$0.84

  • Endeavor Asset Management views EML Payments as a global payments company navigating recent volatility.
  • The launch of the "EML 2.0 Strategy Plan" in November aims to drive organic profit growth and simplify operations.
  • The strategy aspires for $95 million EBITDA by FY28, targeting a 13% annual growth.
  • Initial market reaction to the strategy was positive, but sentiment shifted following the termination of CEO Ron Hynes.
  • This shift led to a 17% decline in share price in December.
  • EML is currently trading at 12x FY25 P/E and 6.5x EV/EBITDA, indicating an attractive valuation.
  • Endeavor Asset Management remains optimistic about EML's ability to overcome leadership challenges.
  • Commend the board's focus on selecting personnel that aligns with EML's long-term strategic goals.

Summary

Monash Investors

31 Dec 2024

$0.84

  • EML Payments has experienced a significant decline of 17% due to the unexpected departure of its CEO, Ron Hynes.
  • The Board terminated Hynes's employment shortly before Christmas, emphasizing the need for leadership aligned with the company's EML 2.0 strategy.
  • Monash Investors recognizes that reassessing companies during leadership changes is crucial for making informed decisions.
  • The decision to replace the CEO was deemed necessary to avoid future complications from maintaining ineffective leadership.
  • EML Payments has made notable progress in improving its operations, including the divestment of non-core assets.
  • The business is now focused on growth and cost reduction, with attractive valuation metrics.
  • In the global payments sector, Monash Investors sees potential for EML to become appealing to strategic or financial acquirers.
  • Given EML's complex background, there may be opportunities for corporate activity in the near future.

Summary

DMX Asset Management

31 Dec 2024

$0.84

  • DMX Asset Management is reassessing its investment thesis in EML Payments Ltd after recent leadership changes.
  • The sudden departure of the new CEO highlights the importance of effective leadership in executing the company’s strategy.
  • Despite the leadership transition, EML has shown significant progress in its turnaround efforts.
  • The company has divested non-core assets and is focusing on growth while reducing costs.
  • Valuation metrics are attractive, positioning EML favorably in the current market.
  • In the global payments landscape, EML may attract interest from strategic or financial acquirers.
  • DMX Asset Management continues to hold because of the potential for corporate activity in the future.

Summary

Forager Funds

31 Dec 2024

$0.84

  • Forager Funds recognizes that EML Payments Ltd is on a winding path to redemption after challenging international acquisitions.
  • Over the past 18 months, EML has focused on cleaning up regulatory issues and streamlining operations.
  • A new managing director was appointed in the second half of 2024, indicating potential for future growth.
  • In November, EML announced a coherent strategy with clear targets for 2028, which led to a 58% increase in share price.
  • Despite the positive developments, EML's turnaround path is not straightforward, as management changes can impact investor sentiment.
  • Following recent management upheaval, where the board ousted the new managing director and reappointed the Chairman, Forager Funds believes there is still a solid underlying business.
  • The board has reaffirmed commitment to the 2028 targets, suggesting a focus on long-term growth.

Summary

Jencay Capital

31 Dec 2024

$0.84

  • Centennial Asset Management believes Zip has the potential to rally in the short term.
  • Zip is well positioned to deliver further strong growth in revenues and profitability.
  • The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
  • New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
  • Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
  • Zip has surprised the market with better-than-expected earnings over the past year.
  • The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.

Summary

QVG Capital

31 Dec 2024

$0.84

  • EML Payments faced a setback by removing their recently appointed CEO shortly after announcing a three-year strategy plan.
  • QVG Capital is closely monitoring the situation following this significant leadership change.
  • Guidance has been maintained, indicating some stability amidst the changes.
  • The chairman is actively involved, taking on an executive role, which suggests confidence in the strategic direction.
  • QVG Capital will watch closely how the new management executes the strategic plan.

Summary

Salter Brothers

31 Dec 2024

$0.84

  • Strong share price performance in November
  • Decline in share price due to leadership changes
  • Board decided to terminate Mr. Ron Hynes as Managing Director
  • New leadership is deemed necessary for executing EML 2.0 strategy
  • Medium-term strategy EML 2.0 communicated at recent AGM
  • EBITDA guidance of $54-60m reaffirmed
  • Manager supports the decisions of the reformed Board
  • Sold shares at $1 per share in November
  • Reweighting into position with a medium-term view

Summary

QVG Capital

30 Nov 2024

$0.99

  • QVG Capital identifies EML Payments as a significant contributor to their portfolio.
  • EML Payments has a complex history but is progressing through a turnaround phase.
  • Recent actions include sensible divestments and improvements in the management team.
  • The company has enhanced its float revenue and cost base.
  • EML has provided three-year forward earnings guidance of 13 cents per share, with a current share price of 68.5 cents.
  • This guidance implies a 5x FY28 P/E, which has rerated to 7.5x.
  • The next phase of EML’s turnaround focuses on returning to strong revenue growth.
  • QVG Capital is monitoring the execution of this strategy and sees potential for further upside if successful.

Summary

Monash Investors

30 Nov 2024

$0.99

  • November marks peak AGM season, providing operational updates and long-term guidance.
  • EML Payments reported a 51% increase for the month, showing positive momentum.
  • Monash Investors are long-suffering shareholders due to past regulatory challenges, particularly with the Irish subsidiary.
  • The Irish subsidiary, Prepaid Financial Services, has been wound down and exited in 2024.
  • The balance sheet has strengthened significantly due to the sale of its Open Banking unit, Sentential.
  • EML has consolidated its operations by divesting non-core assets, improving the investment outlook.
  • Monash Investors' position in EML has increased as the company's situation improves.
  • A 64% increase in EBITDA was reported in the first quarter, reaffirming full-year guidance.
  • Long-term goals include earnings per share of 13 cents by FY 2028, driven by growth and cost savings.
  • The strategy and financial targets provide clarity and support for a positive investment case.
  • EML is seen as having significant upside potential from current price levels.
  • Monash Investors believe EML could perform well as a newly re-focused independent operation and attract interest from acquirers.
  • Recent additions to the holding reflect confidence in the recovery story following positive updates and performance.

Summary

DMX Asset Management

30 Nov 2024

$0.99

  • DMX Asset Management has a long-term investment in EML Payments Ltd, initially misjudging its prospects, leading to an 80%+ decline in value.
  • Challenges: EML faced significant hurdles due to regulatory issues with its Irish subsidiary, Prepaid Financial Services, which has now been exited.
  • Balance Sheet Strength: The balance sheet has improved following the sale of the Open Banking unit, Sentential.
  • Reassessed Position: After a thorough reassessment, DMX Asset Management has increased its holdings in EML as conditions have become more favorable.
  • Positive Update: EML recently reported a 64% increase in EBITDA and reaffirmed full-year guidance, bolstering confidence.
  • Long-Term Goals: EML aims for 13 cents earnings per share by FY 2028 through growth initiatives and cost savings.
  • Investment Thesis: Clarity around EML's strategy and targets enhances the positive investment case, suggesting significant upside potential.
  • Acquisition Interest: EML may attract the attention of global strategic or financial acquirers.
  • Position Size: Recent positive updates have increased DMX's position in EML to nearly 4%, making it a Top 5 holding for the Fund.
  • Recovery Potential: DMX Asset Management is well-positioned to capitalize on EML’s recovery if progress continues.

Summary

Salter Brothers

30 Nov 2024

$0.99

  • Salter Brothers continues to hold EML Payments Ltd (EML) as it was added to the top 5 portfolio holdings.
  • The company experienced a substantial re-rate in November, influenced by the strategic vision presented by the new executive team.
  • The executive team outlined a comprehensive roadmap for “EML 2.0”, which includes key financial targets.
  • Highlighted targets include an underlying EBITDA for FY25 in the range of $54-60m.
  • Long-term targets established for FY28 include 10-12% p.a. transaction revenue growth, a 35% EBITDA margin, and an EPS of 13c.
  • The market responded positively, resulting in a substantial 50.7% increase in the company’s share price for the month.

Summary

Wilson Asset Management

30 Nov 2024

$0.99

  • EML Payments is a global payments company operating in Australia, the UK, Europe, and the US.
  • The company recently held an investor day with its new management team outlining growth ambitions.
  • EML Payments set a FY2028 target for earnings per share of 13 cents with an EBITDA margin of 35%.
  • This target eased market concerns and contributed to an increase in EML Payments' share price.
  • Wilson Asset Management remains positive on EML Payments' medium-term plan.
  • There is potential upside to the underlying EBITDA guidance range of $54 to $60 million in FY2025.

Summary

Jencay Capital

30 Sept 2024

$0.65

  • Centennial Asset Management believes Zip has the potential to rally in the short term.
  • Zip is well positioned to deliver further strong growth in revenues and profitability.
  • The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
  • New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
  • Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
  • Zip has surprised the market with better-than-expected earnings over the past year.
  • The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.

Summary

Endeavor Asset Management

30 Sept 2024

$0.65

  • EML Payments continues to face headwinds.
  • Challenges are primarily due to the lack of a formal growth strategy.
  • Endeavor Asset Management is optimistic that upcoming AGM will address these challenges.
  • The AGM is expected to provide clearer direction for EML Payments' future growth path.
  • Endeavor Asset Management continues to hold because of the potential for improvement.

Summary

Endeavor Asset Management

31 Aug 2024

$0.71

  • EML Payments (EML) pulled their forward-looking guidance at FY24 result.
  • Share price has declined by 25% following the result in August.
  • Management plans to reissue guidance and present a refined strategy at the AGM.
  • This will occur after the completion of their restructuring and asset sales.
  • Endeavor Asset Management took advantage of a large sale transaction from a shareholder closing their fund.
  • While residual selling may keep pressure on the share price, we expect a reset of market expectations ahead of the AGM.
  • Endeavor Asset Management continues to hold due to the potential catalyst from upcoming developments.

Summary

Endeavor Asset Management

30 Apr 2024

$1.01

  • Endeavor Asset Management has noted positive developments from EML Payments regarding the settlement of PFS Group liabilities.
  • The settlement occurred at a discount to face value.
  • Restrictions on PFS UK customers have been lifted, signaling potential growth opportunities.
  • Despite these positives, EML's share price experienced a decline of 17.9% in April, following a previous 24% rally in March.
  • Endeavor Asset Management anticipates near term churn in the share register.
  • However, there is confidence that EML Payments is well positioned to resume growth at sustainable rates.

Summary

Endeavor Asset Management

31 Mar 2024

$1.20

  • Endeavor Asset Management invested in EML Payments to capitalize on a turnaround opportunity.
  • EML has exited the problematic PCSIL subsidiary, eliminating a drain on profitability.
  • The sale of Sentenial further strengthens their financial position, with proceeds used to reduce debt and build a cash buffer.
  • EML is now focused on core profitable businesses – Australian and Global Gifting, and the successful UK arm of PFS (PFSL).
  • EML is poised for growth.
  • Analyst projections suggest significant upside based on future earnings.
  • EML's management team is actively implementing a turnaround strategy focused on cost reduction, margin expansion, and core business growth.
  • Endeavor Asset Management believes the streamlined operations, clear path to profitability, and valuable core business put the company in a good position.

Summary

Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed. 

Ella Walker, Equity Research Analyst

ANALYST INSIGHT

Equity Research Analyst

"With a strategic exit from underperforming assets and a renewed focus on core strengths, EML Payments appears to be on the brink of a turnaround. Analysts suggest significant upside, making it a compelling watch for those seeking growth in a shifting landscape."

Last Updated: 30 Sept 2025

Query The Data

Frequently Asked Questions

Who is investing in EML Payments Ltd (ASX:EML)?

Fund managers including Endeavor Asset Management, DMX Asset Management, Salter Brothers, Monash Investors, Forager Funds, Jencay Capital, Oracle Advisory Group, QVG Capital, Wilson Asset Management and Tamim Funds Management have invested in EML Payments Ltd (ASX:EML).

Why do fund managers invest in EML Payments Ltd?

Fund managers are investing in EML Payments Ltd due to its strategic turnaround efforts, including exiting the unprofitable PCSIL subsidiary and selling Sentenial to strengthen its financial position. With a focus on core profitable sectors like Australian and Global Gifting, alongside the UK arm of PFS, EML is well-positioned for growth. Analysts project significant upside based on future earnings, supported by management's cost reduction and margin expansion strategies, which enhance the company's path to profitability.

What happened to EML Payments Ltd (ASX:EML)?

Fund managers are optimistic about EML Payments Ltd due to its strategic transformation and focus on sustainable growth. Following a challenging period, the company has revamped its leadership, divested non-core operations, and established a global partnership with Visa's Pismo to enhance its payment processing capabilities. With a growing sales pipeline and strong revenue performance, fund managers anticipate significant profitability improvements and believe the company is well-positioned for future growth. EML's recent efforts to consolidate its technology and operational efficiencies are seen as key drivers for potential market re-rating and increased investor confidence.

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