EML Payments — Reassuring Q1 update

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EML Payments

Reassuring Q1 update

Q122 trading update

Software & comp services

18 November 2021

Price	A$2.91
Market cap	A$1,087m

Net cash (A$m) at end FY21		103.0

Shares in issue	373.4m
Free float	93%
Code	EML

Primary exchange	ASX
Secondary exchange	N/A

Share price performance

%	1m	3m	12m
Abs	(7.9)	(17.8)	(20.1)
Rel (local)	(8.3)	(17.1)	(30.5)

52-week high/low

A$5.75

A$2.78

Business description

EML Payments is a payment solutions company managing thousands of programmes across 27 countries in Europe, North America and Australia. It provides payment solutions for banking, credit and disbursement services, earned wage access, gifts, incentives and rewards, and open banking and FX.

Next events

H122 results

February 2022

Analyst

Katherine Thompson

+44 (0)20 3077 5730

tech@edisongroup.com

Edison profile page

EML Payments is a research client of Edison Investment Research Limited

EML provided a Q122 trading update at its AGM, confirming GDV growth of 14% y-o-y, revenue growth of 29% and underlying EBITDA growth of 11%. Management updated guidance for FY22, tightening the revenue range and leaving the underlying EBITDA and NPATA ranges unchanged. EML is in ongoing dialogue with the Irish regulator and is aiming to substantially complete its remediation plan by the end of CY21. We have revised our forecasts to reflect updated guidance, maintaining our underlying EBITDA and NPATA forecasts this year and reducing them in FY23 and FY24 to reflect slightly lower GDV forecasts for GPR and Digital Payments.

Year end	Revenue (A$m)	PBT* (A$m)	NPATA** (A$m)	Diluted EPS* (c)	DPS (c)	P/E (x)	EV/EBITDA (x)
06/20	121.0	21.6	21.0	5.5	0.0	52.9	32.1
06/21	192.2	30.2	21.0	6.6	0.0	44.1	24.8
06/22e	234.2	41.5	29.6	8.8	0.0	33.1	17.7
06/23e	284.6	62.8	52.2	13.2	0.0	22.0	12.2

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Net profit after tax, excluding acquisition-related costs.

Positive Q122 trading update

EML reported gross debit volume (GDV) growth of 14% y-o-y in Q122, with increases across all three divisions. An increase in the group yield (Q122: 95bp, Q121: 84bp) resulted in year-on-year revenue growth of 29%. Increased overheads, the majority related to strengthening the group’s compliance function, meant that underlying EBITDA only increased 11% y-o-y to A$11.2m.

FY22 profitability guidance maintained

EML issued revised guidance for FY22, reducing its expectation for GDV (mainly for Sentenial), tightening the revenue range and maintaining underlying EBITDA and NPATA ranges. The group is investing heavily to strengthen the compliance function to meet the requirements of the Irish regulator, expecting to be substantially through the remediation programme by the end of CY21 and finished by the end of March 2022.

Valuation: Depressed by regulatory issue

The stock took another hit when EML disclosed further Central Bank of Ireland (CBI) correspondence in October, falling back to its previous low of A$2.80 before recovering slightly to the current level post the trading update. In FY23 (when we expect the first positive contribution from Sentenial), EML is trading at a discount to global payment processor peers on an EV/EBITDA and P/E basis, reflecting the profitability and scale of peers, and at a premium to prepaid card peers on the same basis, reflecting its higher growth prospects. Prior to the CBI issue, EML was trading on an FY23e EV/EBITDA of 21.4x and an FY23e P/E of 37.5x. If the regulatory issue is successfully resolved without imposing material growth constraints on the European business, then we would expect the stock to re-rate upwards.

Q122 trading update

For its AGM on 17 November, EML provided a Q122 trading update. We summarise below the financial performance of the business in Q122.

Exhibit 1: Q122 performance

	Q122	Q121	y-o-y
GDV (A$bn)
G&I	0.25	0.20	24%
GPR	2.84	2.39	19%
Digital Payments	2.45	2.27	8%
Group GDV	5.54	4.86	14%
Yield (bp)
G&I	526	598	-72
GPR	128	110	18
Digital Payments	10	12	-2
Group yield	95	84	11
Revenue (A$m)
G&I	13.2	12.0	10%
GPR	36.4	26.3	38%
Digital Payments	2.5	2.8	-13%
Net interest contribution	0.4	-0.5
Group revenue	52.4	40.6	29%
Gross profit	34.4	28.7	20%
Gross margin	65.6%	70.6%
Underlying EBITDA (A$m)	11.2	10.0	11%
Underlying EBITDA margin	21.3%	24.7%
Underlying NPATA (A$m)	4.6	3.3	41%

Source: EML Payments

On a divisional basis:

■

GPR: GDV grew 19% y-o-y and 7% q-o-q, with growth from all regions. This was despite having to put the launch of some new programmes on hold due to the ongoing regulatory issue in Ireland. The number of payroll accounts in Australia grew by 38% y-o-y and gaming volumes grew strongly around the world. The yield benefited from a number of large card orders, in particular for the Northern Ireland stimulus programme (worth c A$140m GDV), which went live in October, leading to revenue growth of 38% y-o-y. The company expects the yield to normalise at c 110bp for the remainder of the year.

■

G&I: GDV grew 24% y-o-y, 11% versus Q120 and 27% q-o-q, benefiting from recovering footfall in malls in Austria, Canada and Poland and growth in incentive programmes. Demand for gift cards in other geographies remains weak, with the UK down 12% y-o-y and Germany down 30% y-o-y, but should start to recover as the pandemic abates. Yield was lower year-on-year due to a higher proportion of incentive programmes and a reduced level of breakage resulting in 10% growth in revenue year-on-year. Based on trading in October, the division is seeing GDV volumes on a par with the same period in FY20, just before COVID-19 hit. The company noted that pre-COVID-19, the seasonal uplift in Q2 for Christmas shopping typically added A$400m to GDV, A$24m to revenue and A$19m to gross profit.

■

Digital Payments: as the Sentenial acquisition did not complete until 1 October, this included just the VANs business. GDV increased 8% y-o-y; the launch of buy now, pay later (BNPL) programmes for Humm and Laybuy and higher volumes from Zellis have compensated for the decline in BillGo volumes as it moves processing in-house.

At a group level, Q122 GDV grew 14% y-o-y, revenue 29% y-o-y and gross profit 20% y-o-y. The company noted that the gross margin was affected by an A$0.8m expense related to negative interest rates on stored value float. The company expects this to be fully offset in H2 by changes to its treasury investment policy. Overheads were up 24% y-o-y due to investment in European headcount (mainly to strengthen the compliance function), higher insurance costs and IT expenditure. This resulted in underlying EBITDA (before A$0.9m in CBI-related costs) of A$11.2m, up 11% y-o-y, and a 41% increase in underlying NPATA to A$4.6m.

Business development update

The company noted that in Q122 it signed 23 contracts and launched 64 programmes, ending the quarter with 114 programmes in implementation globally (including 36 on hold due to the CBI issue).

The second Finlabs investment, Hydrogen, went live this week with EML’s first customers and payments. EML recently completed an integration with Aptpay, a Canadian-based payments business using EML’s card payments technology, and the service has been launched supporting card and non-card payments in Canada.

Update on Irish regulatory issue

In October, the company received a second letter from the CBI regarding PFS Card Services (Ireland) Limited (PCSIL), the entity through which PFS’s European (ex-UK) business has operated since 19 December 2020. The CBI acknowledged the remediation programme currently underway and the governance improvements to PCSIL’s board but advised that PCSIL’s proposed material growth policy is higher than the CBI would want to see. It proposed certain limits be applied to programmes, which, if implemented, could have a negative impact on the PCSIL business.

EML sent its response to the potential directions by the 28 October deadline but has not yet heard back. According to the company, the regulator has not found any instances of financial crime, money laundering or terrorism financing nor any deficiencies with respect to safeguarding, capital adequacy or solvency measures. However, as noted by EML the CBI expects e-money institutions to have strong control frameworks in place to mitigate the inherent high risk they see in such institutions. Until the CBI is satisfied that sufficient processes and procedures have been put in place, EML has put the launch of 36 programmes on hold so as not to breach the limits (out of a total of 114 programmes due for implementation globally). To manage the volumes being processed by PCSIL, the business has selectively eliminated some legacy, high volume but low margin programmes to create headroom for better margin new business.

EML noted that it is 45% of the way through Level 1 tasks in its remediation programme and expects it to be substantially complete by Christmas and fully executed by the end of March 2022. EML expects to be allowed to grow the business within the stronger risk and control frameworks being established.

FY22 outlook revised; EBITDA and NPATA guidance unchanged

The company has revised its outlook for FY22, previously disclosed in August when it reported FY21 results. The figures in bold in Exhibit 2 represent revised guidance. EML has reduced its expectations for GDV, with the bulk of the reduction coming from the Sentenial acquisition. However, as this business generates a much lower yield, it does not have a large impact on revenue. The revenue range has been tightened and the gross margin is unchanged as are EBITDA and NPATA. We note that both EBITDA and NPATA are on an underlying basis, which excludes costs related to the CBI issue.

Exhibit 2: FY22 outlook

		Old guidance			New guidance
		Group	Sentenial	Prepaid	Group	Sentenial	Prepaid
GDV	A$bn	93–100	69–74	24–26	81–88	59–64	22–24
Revenue	A$m	220–255	10–15	210–240	230–250	8–12	222–238
Overheads	A$m	97–106	12–14	85–92	103–112	10–14	91–98
Underlying EBITDA	A$m	58–65	0 to -3	58–65	58–65	0 to -3	58–65
Underlying NPATA	A$m	27–34			27–34
Gross margin		c 69%			c 69%

Source: EML Payments

Changes to forecasts

We have revised our forecasts to reflect Q122 performance and the revised guidance.

Exhibit 3: Revision to estimates

		FY22e	FY22e			FY23e	FY23e			FY24e	FY24e
		Old	New	Change	y-o-y	Old	New	Change	y-o-y	Old	New	Change	y-o-y
Revenues	A$m	235.3	234.2	-0.5%	21.9%	290.1	284.6	-1.9%	21.5%	340.7	327.6	-3.8%	15.1%
Gross profit	A$m	163.3	162.0	-0.8%	26.2%	206.7	203.6	-1.5%	25.7%	247.2	238.0	-3.7%	16.9%
Gross margin		69.4%	69.2%	-0.2%	2.4%	71.3%	71.5%	0.3%	2.4%	72.6%	72.6%	0.1%	1.1%
EBITDA	A$m	60.8	58.9	-3.1%	39.7%	88.4	85.3	-3.5%	44.8%	118.1	110.0	-6.8%	28.9%
EBITDA margin		25.8%	25.2%	-0.7%	3.2%	30.5%	30.0%	-0.5%	4.8%	34.7%	33.6%	-1.1%	3.6%
Add back CBI costs	A$m	0.0	2.0			0.0	0.0			0.0	0.0
Underlying EBITDA	A$m	60.8	60.9	0.2%	13.8%	88.4	85.3	-3.5%	40.1%	118.1	110.0	-6.8%	28.9%
Underlying EBITDA margin		25.8%	26.0%	0.2%	-1.8%	30.5%	30.0%	-0.5%	4.0%	34.7%	33.6%	-1.1%	3.6%
Normalised operating profit	A$m	45.9	44.1	-4.1%	39.5%	68.8	65.8	-4.4%	49.3%	94.8	86.9	-8.4%	32.1%
Normalised operating margin		19.5%	18.8%	-0.7%	2.4%	23.7%	23.1%	-0.6%	4.3%	27.8%	26.5%	-1.3%	3.4%
Reported operating profit	A$m	13.9	12.1	-13.5%	-350.7%	46.3	43.3	-6.5%	259.0%	72.3	64.4	-11.0%	48.7%
Reported operating margin		5.9%	5.1%	-0.8%	7.6%	16.0%	15.2%	-0.7%	10.1%	21.2%	19.6%	-1.6%	4.4%
Normalised PBT	A$m	43.3	41.5	-4.3%	37.4%	65.8	62.8	-4.6%	51.4%	91.9	83.9	-8.7%	33.6%
Reported PBT	A$m	11.3	9.5	-16.5%	-140.6%	43.3	40.3	-6.9%	325.9%	69.4	61.4	-11.5%	52.3%
Normalised net income	A$m	34.7	33.2	-4.3%	37.4%	52.6	50.2	-4.6%	51.4%	73.5	67.1	-8.7%	33.6%
NPATA	A$m	31.1	29.6	-4.8%	40.6%	54.6	52.2	-4.4%	76.7%	75.5	69.1	-8.5%	32.3%
Add back CBI costs	A$m	0.0	1.6			0.0	0.0			0.0	0.0
Underlying NPATA	A$m	31.1	31.2	0.3%	-3.8%	54.6	52.2	-4.4%	67.6%	75.5	69.1	-8.5%	32.3%
Reported net income	A$m	9.1	7.6	-16.5%	-126.4%	34.6	32.2	-6.9%	325.9%	55.5	49.1	-11.5%	52.3%
Normalised basic EPS	A$	0.09	0.09	-4.1%	33.7%	0.14	0.13	-5.0%	50.3%	0.20	0.18	-9.1%	33.6%
Normalised diluted EPS	A$	0.09	0.09	-4.1%	33.7%	0.14	0.13	-5.0%	50.3%	0.19	0.18	-9.1%	33.6%
Reported basic EPS	A$	0.02	0.02	-16.3%	-125.7%	0.09	0.09	-7.4%	322.6%	0.15	0.13	-11.9%	52.3%
NPATA/share	A$	0.08	0.08	-4.6%	36.8%	0.14	0.14	-4.8%	75.3%	0.20	0.18	-8.9%	32.3%
Dividend per share	A$	0.00	0.00	N/A	N/A	0.00	0.00	N/A	N/A	0.00	0.00	N/A	N/A
Net debt/(cash)	A$m	(51.1)	(48.4)	-5.2%	-53.0%	(103.3)	(97.3)	-5.8%	100.9%	(112.1)	(99.3)	-11.4%	2.1%

GDV	A$bn	93.5	83.0	-11.2%	321.9%	126.1	122.1	-3.2%	47.0%	145.6	139.2	-4.4%	14.0%
Yield	bp	25	28	3	-70	23	23	0	-5	23	24	0	0

Divisional data
GDV
G&I	A$bn	1.2	1.3	5%		1.3	1.4	5%		1.5	1.6	5%
GPR	A$bn	13.6	11.8	-14%		15.7	13.6	-14%		17.3	14.9	-14%
Digital Payments	A$bn	78.7	69.9	-11%		109.1	107.1	-2%		126.9	122.7	-3%

Revenue
G&I	A$m	73.0	77.0	5%		80.3	84.7	5%		88.3	93.1	5%
GPR	A$m	136.4	134.7	-1%		156.9	149.1	-5%		172.5	164.0	-5%
Digital Payments	A$m	25.7	22.3	-13%		52.7	50.5	-4%		79.6	70.2	-12%

Gross profit
G&I	A$m	58.4	61.6	5%		64.2	67.7	5%		70.7	74.5	5%
GPR	A$m	83.9	82.2	-2%		99.6	94.7	-5%		112.2	106.6	-5%
Digital Payments	A$m	20.7	18.0	-13%		42.6	40.9	-4%		64.1	56.6	-12%

Gross margin
G&I		80.0%	80.0%			80.0%	80.0%			80.0%	80.0%
GPR		61.5%	61.0%			63.5%	63.5%			65.0%	65.0%
Digital Payments		80.7%	80.9%			80.9%	80.9%			80.6%	80.6%

Source: Edison Investment Research

Valuation

The stock took another hit when EML disclosed further CBI correspondence in October, falling back to its previous low of A$2.80 before recovering slightly post the trading update to the current level. Exhibit 4 shows how EML is trading in relation to three groups: global payment processors, pre-paid card companies and Australian fintechs. In FY22, we are forecasting Sentenial to make a small loss at the EBITDA level, depressing group EBITDA, so comparison to peers is less helpful. In FY23, we expect that Sentenial will generate positive EBITDA. In FY23, EML is trading at a discount to global payment processor peers on an EV/EBITDA and P/E basis, reflecting the scale and profitability of peers. EML trades at a small premium to prepaid card peers on an EV/EBITDA and P/E basis, reflecting its higher growth prospects. Prior to the CBI issue, EML’s valuation metrics for FY23 were an EV/EBITDA multiple of 21.4x and a P/E multiple of 37.5x. If the regulatory issue is successfully resolved without imposing material growth constraints on the European business, then we would expect the stock to re-rate upwards.

Exhibit 4: Peer valuation multiples

	Currency	Market cap (m)	EV/sales			EV/EBITDA			P/E			Div yield
	Currency	Market cap (m)	CY	NY	NY+1	CY	NY	NY+1	CY	NY	NY+1	CY	NY
EML Payments	A$	1,087	4.5	3.7	3.2	17.7	12.2	9.5	33.1	22.0	16.5	0.0%	0.0%
Payment processors
Adyen	€	78,724	75.7	54.6	40.5	122.6	86.9	62.4	172.5	121.8	89.1	0.0%	0.0%
FIS	US$	71,160	6.2	5.7	5.3	14.0	12.6	11.5	17.8	15.5	13.7	1.3%	1.5%
Fiserv	US$	66,565	5.7	5.3	4.9	13.7	12.4	11.3	18.1	15.5	13.4	0.0%	0.0%
Global Payments	US$	38,195	6.1	5.6	5.1	13.1	11.6	10.5	16.1	13.7	11.8	0.6%	0.7%
PayPal Holdings	US$	244,738	9.4	7.9	6.5	32.7	28.0	22.3	44.9	38.7	30.9	0.0%	0.0%
Square	US$	104,848	6.0	5.5	4.6	107.1	96.0	60.5	133.1	119.4	81.4	0.0%	0.0%
Worldline	€	13,761	4.2	3.8	3.5	17.7	13.8	12.8	22.9	19.0	16.3	0.0%	0.1%
Average			16.2	12.6	10.1	45.8	37.3	27.3	60.8	49.1	36.7	0.3%	0.3%

Prepaid card companies
Appreciate Group	£	48	0.2	0.2	0.2	2.4	1.9	1.6	8.4	6.3	5.3	6.4%	8.3%
Edenred	€	10,917	7.8	7.0	6.3	19.1	16.9	15.0	33.3	28.7	24.9	1.9%	2.0%
Euronet Worldwide	US$	6,249	1.9	1.6	1.4	14.1	8.7	6.9	31.0	16.1	12.2	0.0%	0.0%
Fleetcor Technologies	US$	19,611	8.6	7.5	6.8	15.1	13.2	11.6	18.5	15.7	13.6	0.0%	0.0%
Green Dot Corp	US$	2,375	2.6	2.4	2.3	16.0	13.7	12.0	19.3	15.9	13.6	0.0%	0.0%
WEX	US$	6,743	5.1	4.6	4.1	12.5	10.8	9.7	16.8	14.1	12.1	0.0%	0.0%
Average			4.4	3.9	3.5	13.2	10.9	9.5	21.2	16.1	13.6	1.4%	1.7%

Australian fintechs
Afterpay Ltd	A$	33,497	22.1	14.4	10.8	274.5	101.8	50.6	N/A	397.8	131.1	0.0%	0.0%
FlexiGroup Ltd	A$	411	5.6	4.7	4.1	27.9	24.4	19.5	7.5	6.3	5.0	5.9%	6.3%
Zip Co Ltd	A$	3,412	7.0	4.9	3.9	N/A	N/A	N/A	N/A	N/A	N/A	0.0%	0.0%
Average			11.5	8.0	6.3	151.2	63.1	35.1	7.5	202.0	68.1	2.0%	2.1%

Source: Edison Investment Research, Refinitiv (as at 16 November)

Exhibit 5: Financial summary

	A$m	2018	2019	2020	2021	2022e	2023e	2024e
Year end 30 June		IFRS	IFRS	IFRS	IFRS	IFRS	IFRS	IFRS
INCOME STATEMENT
Revenue		71.0	97.2	121.0	192.2	234.2	284.6	327.6
Cost of Sales		(17.7)	(24.2)	(32.9)	(63.8)	(72.2)	(81.0)	(89.6)
Gross Profit		53.3	73.0	88.1	128.4	162.0	203.6	238.0
EBITDA		21.0	29.7	32.5	42.2	58.9	85.3	110.0
Normalised operating profit		18.1	25.6	22.4	31.6	44.1	65.8	86.9
Amortisation of acquired intangibles		(7.2)	(7.5)	(11.1)	(20.2)	(20.0)	(20.0)	(20.0)
Exceptionals		(0.3)	(3.0)	(13.6)	(11.2)	(2.0)	0.0	0.0
Share-based payments		(5.0)	(4.2)	(6.1)	(5.0)	(10.0)	(2.5)	(2.5)
Reported operating profit		5.6	10.9	(8.5)	(4.8)	12.1	43.3	64.4
Net Interest		(0.1)	(0.0)	(0.7)	(1.4)	(2.6)	(3.0)	(3.0)
Joint ventures & associates (post tax)		0.0	0.0	0.0	0.0	0.0	0.0	0.0
Exceptionals		(0.5)	(1.8)	1.3	(17.1)	0.0	0.0	0.0
Profit Before Tax (norm)		17.9	25.6	21.6	30.2	41.5	62.8	83.9
Profit Before Tax (reported)		5.0	9.0	(7.9)	(23.3)	9.5	40.3	61.4
Reported tax		(2.8)	(0.6)	0.7	(5.4)	(1.9)	(8.1)	(12.3)
Profit After Tax (norm)		14.4	20.5	17.2	24.1	33.2	50.2	67.1
Profit After Tax (reported)		2.2	8.5	(7.1)	(28.7)	7.6	32.2	49.1
Minority interests		0.0	(0.2)	0.0	0.0	0.0	0.0	0.0
Discontinued operations		0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net income (normalised)		14.4	20.3	17.2	24.1	33.2	50.2	67.1
Net income (reported)		2.2	8.3	(7.1)	(28.7)	7.6	32.2	49.1

Basic ave. number of shares outstanding (m)		246	249	304	360	371	373	373
EPS - basic normalised (A$)		0.058	0.081	0.056	0.067	0.090	0.135	0.18
EPS - diluted normalised (A$)		0.057	0.078	0.055	0.066	0.088	0.132	0.18
EPS - basic reported (A$)		0.009	0.033	(0.023)	(0.080)	0.020	0.086	0.13
Dividend (A$)		0.00	0.00	0.00	0.00	0.00	0.00	0.00

Revenue growth (%)		22.5	36.9	24.4	58.9	21.9	21.5	15.1
Gross Margin (%)		75.1	75.1	72.8	66.8	69.2	71.5	72.6
EBITDA Margin (%)		29.6	30.6	26.9	21.9	25.2	30.0	33.6
Normalised Operating Margin (%)		25.4	26.4	18.5	16.4	18.8	23.1	26.5

BALANCE SHEET
Fixed Assets		108.0	162.9	872.1	685.3	969.1	1,004.2	1,033.5
Intangible Assets		65.8	104.6	371.7	350.1	506.8	489.0	470.1
Tangible Assets		3.5	5.4	14.6	11.2	7.7	3.9	4.9
Investments & other		38.7	53.0	485.8	323.9	454.6	511.3	558.4
Current Assets		131.6	313.8	1,008.6	1,603.5	1,790.3	2,068.6	2,210.1
Stocks		12.6	18.2	22.3	16.4	19.0	20.9	23.0
Debtors		8.9	14.4	21.7	22.0	26.7	32.5	37.4
Cash & cash equivalents		39.0	33.1	118.4	141.2	117.7	166.5	117.6
Other		71.1	248.2	846.2	1,424.0	1,626.9	1,848.8	2,032.2
Current Liabilities		(90.5)	(299.0)	(1,357.8)	(1,792.8)	(2,111.8)	(2,398.9)	(2,628.5)
Creditors		(21.2)	(33.9)	(47.5)	(62.9)	(71.8)	(81.5)	(89.0)
Tax and social security		0.0	(0.8)	(2.6)	(6.0)	(6.0)	(6.0)	(6.0)
Short term borrowings		0.0	(15.0)	0.0	(1.4)	(1.4)	(1.4)	(1.4)
Other		(69.3)	(249.4)	(1,307.7)	(1,722.5)	(2,032.6)	(2,310.0)	(2,532.1)
Long Term Liabilities		(19.3)	(33.5)	(82.6)	(81.1)	(167.1)	(158.7)	(48.2)
Long term borrowings		0.0	0.0	(35.8)	(36.9)	(67.9)	(67.9)	(16.9)
Other long-term liabilities		(19.3)	(33.5)	(46.8)	(44.2)	(99.2)	(90.9)	(31.4)
Net Assets		129.8	144.2	440.2	414.9	480.5	515.3	566.9
Minority interests		0.0	0.0	0.0	0.0	0.0	0.0	0.0
Shareholders' equity		129.8	144.2	440.2	414.9	480.5	515.3	566.9

CASH FLOW
Op Cash Flow before WC and tax		19.7	28.4	31.2	41.2	58.0	84.4	109.1
Working capital		(9.2)	2.0	3.6	31.7	(0.1)	0.9	(0.8)
Exceptional & other		(1.2)	(0.7)	(12.7)	(17.3)	(31.0)	0.0	0.0
Tax		(2.8)	(0.6)	0.7	(5.4)	(1.9)	(8.1)	(12.3)
Net operating cash flow		6.5	29.2	22.8	50.2	24.9	77.3	96.0
Capex		(5.3)	(5.8)	(11.0)	(12.6)	(14.0)	(17.1)	(19.3)
Acquisitions/disposals		(0.7)	(44.0)	(142.5)	(3.5)	(61.6)	(7.1)	(70.4)
Net interest		(0.1)	(0.0)	(0.7)	(1.4)	(2.6)	(3.0)	(3.0)
Equity financing		0.0	0.4	240.8	0.6	0.0	0.0	0.0
Dividends		0.0	0.0	0.0	0.0	0.0	0.0	0.0
Other		(0.6)	(0.4)	(7.0)	(11.0)	(1.2)	(1.2)	(1.2)
Net Cash Flow		(0.2)	(20.6)	102.3	22.2	(54.6)	48.9	2.0
Opening net debt/(cash)		(39.9)	(39.0)	(18.1)	(82.5)	(103.0)	(48.4)	(97.3)
FX		(0.6)	(0.3)	(2.0)	0.6	0.0	0.0	0.0
Other non-cash movements		0.0	0.0	(35.8)	(2.4)	0.0	0.0	0.0
Closing net debt/(cash)		(39.0)	(18.1)	(82.5)	(103.0)	(48.4)	(97.3)	(99.3)

Source: EML Payments, Edison Investment Research

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