EML Payments — Irish regulator extends growth cap

EML Payments (ASX: EML)

Last close As at 13/12/2024

AUD0.96

0.02 (1.60%)

Market capitalisation

AUD357m

More on this equity

Research: TMT

EML Payments — Irish regulator extends growth cap

The Irish regulator has extended the growth cap on European General Purpose Reloadable (GPR) volumes for an additional 12 months to the end of CY23. This limits growth of volumes in Europe (ex-UK) to 10% over the baseline volume in the first nine months of CY22. This restriction could be lifted early, if third-party assurance of ongoing remediation work is finalised before the end of CY23. We have revised our forecasts to reflect slower volume growth in GPR and higher compliance-related overheads.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

EML Payments

Irish regulator extends growth cap

Regulatory update

Software and comp services

15 November 2022

Price

A$0.525

Market cap

A$196m

Net debt (A$m) at end FY22

10

Shares in issue

374m

Free float

93%

Code

EML

Primary exchange

ASX

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(21.8)

(54.4)

(81.6)

Rel (local)

(26.1)

(54.8)

(80.5)

52-week high/low

A$3.63

A$0.41

Business description

EML Payments is a payment solutions company managing thousands of programmes across 32 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

AGM

25 November 2022

Analysts

Katherine Thompson

+44 (0)20 3077 5730

EML Payments is a research client of Edison Investment Research Limited

The Irish regulator has extended the growth cap on European General Purpose Reloadable (GPR) volumes for an additional 12 months to the end of CY23. This limits growth of volumes in Europe (ex-UK) to 10% over the baseline volume in the first nine months of CY22. This restriction could be lifted early, if third-party assurance of ongoing remediation work is finalised before the end of CY23. We have revised our forecasts to reflect slower volume growth in GPR and higher compliance-related overheads.

Year end

Revenue
(A$m)

PBT*
(A$m)

NPATA** (A$m)

Diluted EPS*
(c)

DPS
(c)

P/E
(x)

EV/EBITDA
(x)

06/21

192.2

30.2

21.0

6.6

0.0

8.0

4.9

06/22

232.4

16.0

19.3

3.4

0.0

15.5

6.0

06/23e

244.1

7.3

1.4

1.5

0.0

34.3

6.8

06/24e

273.9

12.5

12.0

2.6

0.0

19.9

5.2

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

Growth cap extended for European GPR

EML has announced that it has had further clarification from the Central Bank of Ireland (CBI) relating to the growth cap applied to its Irish subsidiary, PFS Card Services (Ireland) Limited (PCSIL). This cap was originally put in place to last until the end of CY22. When EML reported in July that it was required to undertake more comprehensive remediation work to satisfy the regulator, it noted that third-party assessment of this work would shift into CY23 rather than the originally targeted deadline of end June 2022. The CBI has decided that PCSIL will be limited to growth of 10% above the annualised baseline volumes between January and September 2022, with this restriction applying to PCSIL total payment volumes for a further period of 12 months to the end of CY23. The restriction may be lifted sooner if the remediation programme is completed and independently verified before December 2023. This cap only applies to GPR volumes in Europe (ex-UK).

Forecasts revised to reflect growth cap

The extended growth cap in Europe combined with the restriction on new business in the UK (both for GPR only) has prompted us to revise down our revenue forecasts for FY23 and FY24. Combined with higher overheads to deal with compliance issues, this reduces our FY23 EBITDA by 28% and FY24 by 25%. EML is due to present the outcome of its strategic review at its AGM on 25 November at which point it is also likely to provide guidance for FY23.

Valuation: Regulatory resolution key to upside

EML is trading at a material discount to global payment processor peers on all metrics and at a discount to prepaid card peers on an EV/sales and EV/EBITDA basis. Repeated downgrades have reduced confidence in EML’s outlook. Factors that could drive a return to an upgrade cycle and a re-rating of the stock include lifting of the growth constraints on the European business, clawback of the costs of the Sentenial fraud and the outcome of the strategic review.

Changes to forecasts

Exhibit 1: Changes to forecasts

FY23e

FY23e

FY24e

FY24e

Old

New

Change

y-o-y

Old

New

Change

y-o-y

Revenues

A$m

256.7

244.1

-4.9%

5.1%

287.8

273.9

-4.9%

12.2%

Gross profit

A$m

174.3

166.7

-4.3%

5.6%

196.5

188.1

-4.3%

12.8%

Gross margin

67.9%

68.3%

0.4%

0.4%

68.3%

68.7%

0.4%

0.4%

EBITDA

A$m

42.1

30.4

-27.7%

-11.3%

52.6

39.3

-25.2%

29.3%

EBITDA margin

16.4%

12.5%

-3.9%

-2.3%

18.3%

14.4%

-3.9%

1.9%

Normalised operating profit

A$m

22.7

11.0

-51.5%

-40.2%

29.5

16.3

-45.0%

47.9%

Normalised operating margin

8.8%

4.5%

-4.3%

-3.4%

10.3%

5.9%

-4.3%

1.4%

Reported operating profit

A$m

-7.8

-19.5

148.9%

-N/A

7.0

-6.2

N/A

-68.0%

Reported operating margin

-3.1%

-8.0%

-4.9%

-8.1%

2.4%

-2.3%

-4.7%

5.7%

Normalised PBT

A$m

18.9

7.3

-61.7%

-54.6%

25.8

12.5

-51.5%

72.6%

Reported PBT

A$m

(11.6)

(23.2)

100.9%

6736.9%

3.3

(10.0)

N/A

-57.1%

Normalised net income

A$m

15.1

5.8

-61.7%

-54.6%

20.6

10.0

-51.5%

72.6%

NPATA

A$m

10.7

1.4

-86.9%

-92.7%

22.6

12.0

-46.9%

755.9%

Reported net income

A$m

(9.3)

(18.6)

100.9%

287.3%

2.6

(8.0)

N/A

-57.1%

Normalised basic EPS

A$

0.04

0.02

-61.7%

-55.0%

0.06

0.03

-51.5%

72.6%

Normalised diluted EPS

A$

0.04

0.02

-61.7%

-55.0%

0.05

0.03

-51.5%

72.6%

Reported basic EPS

A$

-0.02

-0.05

100.9%

284.5%

0.01

-0.02

N/A

-57.1%

NPATA/share

A$

0.03

0.00

-86.9%

-92.8%

0.06

0.03

-46.9%

755.9%

Dividend per share

A$

0.00

0.00

N/A

N/A

0.00

0.00

N/A

N/A

Net debt/(cash)

A$m

(21.2)

(13.3)

-37.3%

-237.1%

(11.6)

6.7

-157.4%

-150%

GDV

A$bn

103.4

102.3

-1.1%

27.5%

110.2

108.9

-1.1%

6.5%

Yield

bp

25

24

-1

-5

26

25

-1

1

Divisional data

GDV

G&I

A$bn

1.5

1.5

0%

9%

1.6

1.6

0%

10%

GPR

A$bn

14.2

13.1

-8%

6%

15.6

14.4

-8%

10%

Digital Payments

A$bn

87.8

87.8

0%

32%

92.9

92.9

0%

6%

Revenue

G&I

A$m

75.7

75.4

0%

10%

84.1

83.7

0%

11%

GPR

A$m

156.3

144.1

-8%

-3%

173.5

159.9

-8%

11%

Digital Payments

A$m

24.5

24.5

0%

32%

30.0

30.0

0%

23%

Gross profit

G&I

A$m

60.6

60.3

0%

67.3

67.0

0%

GPR

A$m

93.0

85.7

-8%

104.1

95.9

-8%

Digital Payments

A$m

20.5

20.5

0%

24.9

24.9

0%

Gross margin

G&I

80.0%

80.0%

80.0%

80.0%

GPR

59.5%

59.5%

60.0%

60.0%

Digital Payments

83.6%

83.6%

83.0%

83.0%

Source: Edison Investment Research

Exhibit 2: Financial summary

A$m

2018

2019

2020

2021

2022

2023e

2024e

30-June

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

71.0

97.2

121.0

192.2

232.4

244.1

273.9

Cost of Sales

(17.7)

(24.2)

(32.9)

(63.8)

(74.6)

(77.4)

(85.8)

Gross Profit

53.3

73.0

88.1

128.4

157.8

166.7

188.1

EBITDA

 

 

21.0

29.7

32.5

42.2

34.3

30.4

39.3

Normalised operating profit

 

 

18.1

25.6

22.4

31.6

18.4

11.0

16.3

Amortisation of acquired intangibles

(7.2)

(7.5)

(11.1)

(20.2)

(16.5)

(20.0)

(20.0)

Exceptionals

(0.3)

(3.0)

(13.6)

(11.2)

1.4

(8.0)

0.0

Share-based payments

(5.0)

(4.2)

(6.1)

(5.0)

(3.0)

(2.5)

(2.5)

Reported operating profit

5.6

10.9

(8.5)

(4.8)

0.3

(19.5)

(6.2)

Net Interest

(0.1)

(0.0)

(0.7)

(1.4)

(2.4)

(3.7)

(3.7)

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)

1.8

0.0

0.0

Profit Before Tax (norm)

 

 

17.9

25.6

21.6

30.2

16.0

7.3

12.5

Profit Before Tax (reported)

 

 

5.0

9.0

(7.9)

(23.3)

(0.3)

(23.2)

(10.0)

Reported tax

(2.8)

(0.6)

0.7

(5.4)

(4.5)

4.6

2.0

Profit After Tax (norm)

14.4

20.5

17.2

24.1

12.8

5.8

10.0

Profit After Tax (reported)

2.2

8.5

(7.1)

(28.7)

(4.8)

(18.6)

(8.0)

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

12.8

5.8

10.0

Net income (reported)

2.2

8.3

(7.1)

(28.7)

(4.8)

(18.6)

(8.0)

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

0.035

0.016

0.027

EPS - diluted normalised (A$)

 

 

0.057

0.078

0.055

0.066

0.034

0.015

0.026

EPS - basic reported (A$)

 

 

0.009

0.033

(0.023)

(0.080)

(0.013)

(0.050)

(0.021)

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

20.9

5.1

12.2

Gross Margin (%)

75.1

75.1

72.8

66.8

67.9

68.3

68.7

EBITDA Margin (%)

29.6

30.6

26.9

21.9

14.8

12.5

14.4

Normalised Operating Margin

25.4

26.4

18.5

16.4

7.9

4.5

5.9

BALANCE SHEET

Fixed Assets

 

 

108.0

162.9

872.1

685.3

827.3

943.6

973.7

Intangible Assets

65.8

104.6

371.7

350.1

448.5

430.9

412.1

Tangible Assets

3.5

5.4

14.6

11.2

12.7

9.7

11.5

Investments & other

38.7

53.0

485.8

323.9

366.1

503.1

550.1

Current Assets

 

 

131.6

313.8

1,008.6

1,603.5

1,855.1

1,963.7

2,109.5

Stocks

12.6

18.2

22.3

16.4

21.5

15.9

17.4

Debtors

8.9

14.4

21.7

22.0

35.8

33.6

37.6

Cash & cash equivalents

39.0

33.1

118.4

141.2

73.7

96.7

56.8

Other

71.1

248.2

846.2

1,424.0

1,724.1

1,817.4

1,997.7

Current Liabilities

 

 

(90.5)

(299.0)

(1,357.8)

(1,792.8)

(2,100.1)

(2,342.9)

(2,570.1)

Creditors

(21.2)

(33.9)

(47.5)

(62.9)

(65.7)

(69.6)

(76.4)

Tax and social security

0.0

(0.8)

(2.6)

(6.0)

(2.8)

(2.8)

(2.8)

Short term borrowings

0.0

(15.0)

0.0

(1.4)

(1.8)

(1.8)

(1.8)

Other

(69.3)

(249.4)

(1,307.7)

(1,722.5)

(2,029.8)

(2,268.7)

(2,489.1)

Long Term Liabilities

 

 

(19.3)

(33.5)

(82.6)

(81.1)

(145.2)

(143.3)

(97.6)

Long term borrowings

0.0

0.0

(35.8)

(36.9)

(81.6)

(81.6)

(61.6)

Other long term liabilities

(19.3)

(33.5)

(46.8)

(44.2)

(63.6)

(61.7)

(35.9)

Net Assets

 

 

129.8

144.2

440.2

414.9

437.1

421.0

415.5

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

437.1

421.0

415.5

CASH FLOW

Op Cash Flow before WC and tax

19.7

28.4

31.2

41.2

33.3

29.5

38.4

Working capital

(9.2)

2.0

3.6

31.7

(68.4)

10.2

(5.7)

Exceptional & other

(1.2)

(0.7)

(12.7)

(17.3)

0.4

(8.4)

0.0

Tax

(2.8)

(0.6)

0.7

(5.4)

(4.5)

4.6

2.0

Net operating cash flow

 

 

6.5

29.2

22.8

50.2

(39.2)

36.0

34.7

Capex

(5.3)

(5.8)

(11.0)

(12.6)

(14.1)

(17.9)

(20.1)

Acquisitions/disposals

(0.7)

(44.0)

(142.5)

(3.5)

(57.1)

10.6

(28.9)

Net interest

(0.1)

(0.0)

(0.7)

(1.4)

(2.4)

(3.7)

(3.7)

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)

(1.9)

(1.9)

(1.9)

Net Cash Flow

(0.2)

(20.6)

102.3

22.2

(114.6)

23.1

(20.0)

Opening net debt/(cash)

 

 

(39.9)

(39.0)

(18.1)

(82.5)

(103.0)

9.7

(13.3)

FX

(0.6)

(0.3)

(2.0)

0.6

(1.1)

0.0

0.0

Other non-cash movements

0.0

0.0

(35.8)

(2.4)

3.0

(0.0)

0.0

Closing net debt/(cash)

 

 

(39.0)

(18.1)

(82.5)

(103.0)

9.7

(13.3)

6.7

Source: EML Payments, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by EML Payments and prepared and issued by Edison, in consideration of a fee payable by EML Payments. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by EML Payments and prepared and issued by Edison, in consideration of a fee payable by EML Payments. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on EML Payments

View All

Latest from the TMT sector

View All TMT content

Research: Healthcare

Midatech Pharma — Patient recruitment begins in rGBM study

In a positive signal for its developmental pipeline, Midatech Pharma has announced the first patient recruitment in the Phase I study evaluating MTX110 (using a convection-enhanced delivery (CED) system) in recurrent glioblastoma (rGBM) at the Preston Robert Tisch Brain Tumor Center, Duke University, United States. Despite the aggressive nature of the cancer (average survival is 12–18 months with treatment) the rGBM space remains underserved (no new drug has been approved in over a decade) with development stymied by the challenges of crossing the blood brain barrier. MTX aims to overcome this issue by using a CED system to deliver therapeutic doses directly to the tumour site. We expect the release of preliminary data from the study (anticipated in H123) to be a key upcoming catalyst for the stock.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free