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At its AGM in November, EML Payments presented the outcome of its recent strategic review and the new three-year transformation plan. This includes fully integrating previous acquisitions, streamlining operations, becoming more customer-focused and developing EML’s product suite to evolve from prepaid cards to embedded finance. Based on Q123 trading we have revised our forecasts down to the lower end of new FY23 guidance.
EML Payments |
New three-year plan to transform the business |
Q123 update and AGM |
Software and comp services |
9 December 2022 |
Share price performance
Business description
Next events
Analyst
EML Payments is a research client of Edison Investment Research Limited |
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At its AGM in November, EML Payments presented the outcome of its recent strategic review and the new three-year transformation plan. This includes fully integrating previous acquisitions, streamlining operations, becoming more customer-focused and developing EML’s product suite to evolve from prepaid cards to embedded finance. Based on Q123 trading we have revised our forecasts down to the lower end of new FY23 guidance.
Year end |
Revenue |
PBT* |
NPATA** (A$m) |
Diluted EPS* (c) |
DPS |
P/E |
EV/EBITDA |
06/21 |
192.2 |
30.2 |
21.0 |
6.6 |
0 |
9.7 |
5.9 |
06/22 |
232.4 |
16.0 |
19.3 |
3.4 |
0 |
18.7 |
7.2 |
06/23e |
240.9 |
3.3 |
(8.1) |
0.7 |
0 |
90.5 |
9.3 |
06/24e |
271.3 |
12.4 |
11.9 |
2.6 |
0 |
24.4 |
6.3 |
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.
Strategic review concluded, three-year plan unveiled
The outcome of the strategic review launched by EML’s new CEO in August was presented at the AGM on 25 November. Many of the issues currently affecting the business have arisen from the lack of integration of the seven acquisitions made since FY15. To build on the existing customer and product base, a three-year transformation strategy has been announced, formulated around three pillars: elevate, streamline and reposition for growth. No disposals or business closures were announced, and in our view, the strategy represents an evolution of the business rather than a change in direction.
FY23 estimates reflect ongoing remediation work
The company gave an update on Q123 trading, which, as expected, was affected by the ongoing remediation work for the Irish regulator in the European general purpose reloadable (GPR) business. EML also presented FY23 guidance for the first time. We have revised down our forecasts for FY23 and FY24 to reflect Q123 trading and the new guidance. The company continues to expect resolution of the regulatory issues in the UK and the EU during CY23. Cost reductions are planned for FY24, but we expect these to only take effect in the latter half of the year, with the full effect in FY25.
Valuation: Positive reaction to new plan
The stock is up 20% since the new strategy was announced and changes to the board were made. EML continues to trade at a material discount to global payment processor and 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 GPR business, clawback of the costs of the Sentenial fraud and evidence of progress with the new three-year strategy.
Outcome of strategic review
In August, CEO Emma Shand announced that she was launching a strategic review of the business. At the AGM, she unveiled the results of the review and the new strategy for the company.
Findings of the review
After reviewing the operations of the business over the last three months, Ms Shand came to the following conclusions:
■
Regulation: the remediation plan is ongoing, with more to be done to mend operational shortcomings and rebuild stakeholder trust.
■
Organisation structure: the structure is not aligned to customers – internal reporting is on a geographic level rather than at a product or sector level.
■
Fragmented business: acquisitions have not all been integrated resulting in silos, misaligned culture, operational inefficiency and out-of-date technology.
■
Operational efficiency: the lack of analysis and insights about client, sector and product profitability makes data-driven decisions difficult. Legacy technology, manual processes and slow time to market all reduce efficiency.
■
Employee engagement: there is a remote-first ethos, with many staff working from home. There is a lack of clarity around strategy and performance expectations, and an inconsistent employee value proposition.
■
Product and proposition: the company is spread too wide and thin in its geographical reach and propositions. Bespoke point solutions and architecture limit its ability to scale.
Exhibit 1 summarises the future of the payments market as it applies to EML. Ms Shand highlighted that the company needs to continuously assess the megatrends and policy shaping the payments sector, in order to focus on customer needs and innovation while operating within the company’s risk appetite.
|
Exhibit 1: Payments market outlook |
|
|
Source: EML Payments |
Proposed action plan
The chart below shows the company’s strategy to transform the business.
|
Exhibit 2: Transformation strategy |
|
|
Source: EML Payments |
Looking at each pillar in more detail (date references are to calendar quarters):
■
Elevate: the remediation programme is ongoing. For the Central Bank of Ireland (CBI – the regulator of EML’s EU-based business), the company anticipates further remediation and implementation work during Q422–Q123, with further quality assurance work continuing in Q223, before seeking third-party assurance and dealing with any residual issues in Q3–Q423. In parallel, EML is working on satisfying the requirements of the UK regulator (Financial Conduct Authority (FCA)). Once this work is complete, the company should have much stronger governance and risk management functions. We would estimate that a proportion of the cost incurred in building out the regulatory-related teams will remain once the CBI and FCA have signed off on the work, to ensure that the group meets its regulatory requirements in all jurisdictions.
■
Streamline: actions include transforming the customer journey and service (including automated and self-service processes); developing a centralised technology, operations, innovation and delivery hub; rationalising and modernising the technology estate; creating a single source of data in an integrated data platform to help with decision-making, data protection and governance, and automating reporting; strengthening compliance; and right-sizing the organisation to align it to the new strategy.
■
Reposition for growth: reposition the base to evolve from prepaid cards into an embedded finance leader in four key sectors: human capital management, financial services, retail and government. The company estimates that these four verticals provide a serviceable addressable market of c A$114bn, of which EML currently makes up 0.15%. We note that EML is already active in all four of the verticals so this will be an evolutionary rather than a revolutionary process.
As part of this process, management is aiming to reduce controllable cost by c 10–15%, starting in FY24 and with the full impact in FY25. It also expects to provide a sustainability report, with benchmarking against recognised ESG standards, in FY24.
Board changes
At the AGM, Peter Martin was not re-elected as chairman. Consequently, David Liddy, the deputy chairman, was appointed chairman with immediate effect. A new non-executive director, Brent Cubis, who in October had been proposed with an effective start date of 6 February 2023, was elected. His appointment was made effective immediately.
While the proposal to approve the remuneration report was passed with 71.14% of votes, as more than 25% of votes were against the proposal, the company received ‘one strike’. If the company receives a second strike, shareholders would have the opportunity to vote the board out of office.
Q123 trading update and FY23 guidance
At the AGM, the company provided an update on trading in Q123 (see Exhibit 3).
Exhibit 3: Q123 trading highlights
Q123 |
Q122 |
y-o-y |
||
Gross debit volume (GDV) |
A$bn |
23.2 |
5.7 |
307% |
Revenue |
A$m |
49.0 |
51.3 |
-5% |
Yield |
bp |
21 |
90 |
|
Gross profit |
A$m |
32.5 |
33.7 |
-3% |
Gross margin |
66.3% |
65.6% |
||
Underlying overheads |
A$m |
29.3 |
22.7 |
29% |
Underlying EBITDA |
A$m |
3.4 |
11.5 |
-70% |
GDV |
Q123 |
Q122 |
y-o-y |
|
General Purpose Reloadable |
A$bn |
3.23 |
2.98 |
9% |
Gift and Incentive |
A$bn |
0.25 |
0.25 |
0% |
Digital Payments |
A$bn |
19.67 |
2.45 |
703% |
Source: EML Payments
General Purpose Reloadable (GPR) gross debit volume (GDV) increased 9% y-o-y despite growth restrictions in Europe during the period. GPR yield declined from 124bp in Q122 to 100bp in Q123, reflecting the A$3.2m in non-recurring dormant account fees that was recognised in Q122 and a reduction in establishment fees of A$3.2m y-o-y. Despite this, GPR gross margin of 58% was in line with Q122. Gift and Incentive (G&I) GDV was flat year-on-year and 10% higher quarter-on-quarter. The company noted that during the first six weeks of Q223, GDV was up 30% y-o-y, with incentives driving most of the growth but with malls up 20% y-o-y. The two weeks leading up to Christmas will be the crucial weeks for this business. The company did not disclose the G&I yield for Q123. In Digital Payments, Q122 only included the Virtual Account Numbers (VANs) business prior to the Sentenial acquisition in Q222. The company noted that group GDV was 8% higher year-on-year once the Sentenial contribution is excluded (which implies GDV of A$17.0bn for Sentenial). Open banking volumes were 40% higher year-on-year (on a pro-forma basis) with an annualised revenue run rate in October of A$6m versus A$4m in March. The company noted that direct debit volumes were lower quarter-on-quarter as the business focused on open banking.
Group overheads were 29% higher year-on-year, but were lower than in Q422. Further costs are likely to be incurred to manage regulatory matters in FY23. Underlying EBITDA excludes A$14m in one-off costs relating to the European regulatory remediation programmes, restructuring, Sentential fraud and executive retention.
The company noted that, as expected, interest income on stored float had increased as central banks have raised their rates, with net interest income of A$2.5m for Q123 compared to A$1.4m for the whole of FY22. Interest income was A$0.5m in July rising to A$1.6m in October and an estimated A$1.8m for November (A$21m annualised).
Outlook for FY23 and changes to forecasts
The company issued guidance for FY23 for the first time (see Exhibit 4). Our estimates prior to this guidance were at the lower end of the revenue range and the middle of the underlying EBITDA range. We have revised our forecasts (Exhibit 5) to take account of the Q123 performance and new gross margin and overheads guidance, conservatively reducing both revenue and underlying EBITDA to the bottom of the ranges.
Exhibit 4: FY23 company guidance
FY23 outlook |
Bridge to FY23 underlying EBITDA |
A$m |
||
Revenue |
A$240–260m |
Underlying EBITDA FY22 |
51 |
|
Gross margin |
c 67% |
Less: one-off account management fee revenue in FY22 |
18 |
|
Underlying EBITDA |
A$26–34m |
Less: cost increases year-on-year |
27–37 |
|
Overheads |
A$135–145m |
Add: revenue growth |
6–26 |
|
Net interest income |
A$17–21m |
Add: interest revenue |
16–20 |
|
Underlying EBITDA FY23 |
26–34 |
Source: EML Payments
Exhibit 5: Changes to estimates
FY23e |
FY23e |
FY24e |
FY24e |
||||||
Old |
New |
Change |
y-o-y |
Old |
New |
Change |
y-o-y |
||
Revenues |
A$m |
244.1 |
240.9 |
-1.3% |
3.7% |
273.9 |
271.3 |
-1.0% |
12.6% |
Gross profit |
A$m |
166.7 |
161.5 |
-3.1% |
2.3% |
188.1 |
183.8 |
-2.3% |
13.8% |
Gross margin |
68.3% |
67.0% |
-1.2% |
-0.9% |
68.7% |
67.8% |
-0.9% |
0.7% |
|
EBITDA |
A$m |
30.4 |
10.5 |
-65.5% |
-69.4% |
39.3 |
39.2 |
-0.4% |
273.0% |
EBITDA margin |
12.5% |
4.4% |
-8.1% |
-10.4% |
14.4% |
14.4% |
0.1% |
10.1% |
|
Add back one-off costs |
A$m |
0.0 |
16.0 |
0.0 |
0.0 |
||||
Underlying EBITDA |
A$m |
30.4 |
26.5 |
-12.9% |
-48.2% |
39.3 |
39.2 |
-0.4% |
47.8% |
Underlying EBITDA margin |
12.5% |
11.0% |
-1.5% |
-11.0% |
14.4% |
14.4% |
0.1% |
3.4% |
|
Normalised operating profit |
A$m |
11.0 |
7.1 |
-35.8% |
-61.6% |
16.3 |
16.1 |
-1.0% |
127.8% |
Normalised operating margin |
4.5% |
2.9% |
-1.6% |
-5.0% |
5.9% |
5.9% |
0.0% |
3.0% |
|
Reported operating profit |
A$m |
-19.5 |
-31.4 |
61.1% |
N/A |
-6.2 |
-6.4 |
2.7% |
-79.6% |
Reported operating margin |
-8.0% |
-13.0% |
-5.1% |
-13.2% |
-2.3% |
-2.4% |
-0.1% |
10.7% |
|
Normalised PBT |
A$m |
7.3 |
3.3 |
-54.2% |
-79.2% |
12.5 |
12.4 |
-1.3% |
271.4% |
Reported PBT |
A$m |
(23.2) |
(35.2) |
51.3% |
10245.5% |
(10.0) |
(10.1) |
1.7% |
-71.1% |
Normalised net income |
A$m |
5.8 |
2.7 |
-54.2% |
-79.2% |
10.0 |
9.9 |
-1.3% |
271.4% |
NPATA |
A$m |
1.4 |
(8.1) |
-679.9% |
-142.1% |
12.0 |
11.9 |
-1.1% |
-246.0% |
Add back one-off costs |
A$m |
0.0 |
12.8 |
0.0 |
0.0 |
||||
Underlying NPATA |
A$m |
1.4 |
4.7 |
232.0% |
-85.5% |
12.0 |
11.9 |
-1.1% |
154.9% |
Reported net income |
A$m |
(18.6) |
(28.1) |
51.3% |
486.1% |
-8.0 |
-8.1 |
1.7% |
-71.1% |
Normalised basic EPS |
A$ |
0.02 |
0.01 |
-54.2% |
-79.4% |
0.03 |
0.03 |
-1.3% |
271.4% |
Normalised diluted EPS |
A$ |
0.02 |
0.01 |
-54.2% |
-79.4% |
0.03 |
0.03 |
-1.3% |
271.4% |
Reported basic EPS |
A$ |
(0.05) |
(0.08) |
51.3% |
481.8% |
(0.02) |
(0.02) |
1.7% |
-71.1% |
NPATA/share |
A$ |
0.00 |
(0.02) |
-679.9% |
-141.8% |
0.03 |
0.03 |
-1.1% |
-246.0% |
Dividend per share |
A$ |
0.00 |
0.00 |
N/A |
N/A |
0.00 |
0.00 |
N/A |
N/A |
Net debt/(cash) |
A$m |
(13.3) |
(4.5) |
-66.6% |
-145.8% |
6.7 |
16.8 |
151.9% |
-476.7% |
GDV |
A$bn |
102.3 |
100.5 |
-1.8% |
25.2% |
108.9 |
107.2 |
-1.6% |
6.7% |
Yield |
bp |
24 |
24 |
0 |
-5 |
25 |
25 |
0 |
1 |
Divisional data |
|||||||||
GDV |
|||||||||
G&I |
A$bn |
1.5 |
1.4 |
-2% |
7% |
1.6 |
1.6 |
-2% |
10% |
GPR |
A$bn |
13.1 |
13.1 |
0% |
6% |
14.4 |
14.4 |
0% |
10% |
Digital Payments |
A$bn |
87.8 |
85.9 |
-2% |
29% |
92.9 |
91.2 |
-2% |
6% |
Revenue |
|||||||||
G&I |
A$m |
75.4 |
74.7 |
-1% |
9% |
83.7 |
82.2 |
-2% |
10% |
GPR |
A$m |
144.1 |
142.7 |
-1% |
-4% |
159.9 |
158.5 |
-1% |
11% |
Digital Payments |
A$m |
24.5 |
23.3 |
-5% |
29% |
30.0 |
30.4 |
1% |
31% |
Gross profit |
|||||||||
G&I |
A$m |
60.3 |
59.0 |
-2% |
67.0 |
64.9 |
-3% |
||
GPR |
A$m |
85.7 |
82.8 |
-3% |
95.9 |
93.5 |
-3% |
||
Digital Payments |
A$m |
20.5 |
19.5 |
-5% |
24.9 |
25.2 |
1% |
||
Gross margin |
|||||||||
G&I |
80.0% |
79.0% |
80.0% |
79.0% |
|||||
GPR |
59.5% |
58.0% |
60.0% |
59.0% |
|||||
Digital Payments |
83.6% |
83.7% |
83.0% |
82.8% |
Source: Edison Investment Research
Exhibit 6: Financial summary
A$m |
2018 |
2019 |
2020 |
2021 |
2022 |
2023e |
2024e |
||
Year end 30 June |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
|||||||||
Revenue |
|
|
71.0 |
97.2 |
121.0 |
192.2 |
232.4 |
240.9 |
271.3 |
Cost of Sales |
(17.7) |
(24.2) |
(32.9) |
(63.8) |
(74.6) |
(79.4) |
(87.4) |
||
Gross Profit |
53.3 |
73.0 |
88.1 |
128.4 |
157.8 |
161.5 |
183.8 |
||
EBITDA |
|
|
21.0 |
29.7 |
32.5 |
42.2 |
34.3 |
26.5 |
39.2 |
Normalised operating profit |
|
|
18.1 |
25.6 |
22.4 |
31.6 |
18.4 |
7.1 |
16.1 |
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 |
(16.0) |
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 |
(31.4) |
(6.4) |
||
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 |
3.3 |
12.4 |
Profit Before Tax (reported) |
|
|
5.0 |
9.0 |
(7.9) |
(23.3) |
(0.3) |
(35.2) |
(10.1) |
Reported tax |
(2.8) |
(0.6) |
0.7 |
(5.4) |
(4.5) |
7.0 |
2.0 |
||
Profit After Tax (norm) |
14.4 |
20.5 |
17.2 |
24.1 |
12.8 |
2.7 |
9.9 |
||
Profit After Tax (reported) |
2.2 |
8.5 |
(7.1) |
(28.7) |
(4.8) |
(28.1) |
(8.1) |
||
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 |
12.8 |
2.7 |
9.9 |
||
Net income (reported) |
2.2 |
8.3 |
(7.1) |
(28.7) |
(4.8) |
(28.1) |
(8.1) |
||
Basic ave. number of shares outstanding (m) |
246 |
249 |
304 |
360 |
371 |
373 |
373 |
||
EPS - basic normalised (A$) |
|
|
0.058 |
0.081 |
0.056 |
0.067 |
0.035 |
0.007 |
0.026 |
EPS - diluted normalised (A$) |
|
|
0.057 |
0.078 |
0.055 |
0.066 |
0.034 |
0.007 |
0.026 |
EPS - basic reported (A$) |
|
|
0.009 |
0.033 |
(0.023) |
(0.080) |
(0.013) |
(0.075) |
(0.022) |
Dividend (A$) |
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 |
3.7 |
12.6 |
||
Gross Margin (%) |
75.1 |
75.1 |
72.8 |
66.8 |
67.9 |
67.0 |
67.8 |
||
EBITDA Margin (%) |
29.6 |
30.6 |
26.9 |
21.9 |
14.8 |
11.0 |
14.4 |
||
Normalised Operating Margin |
25.4 |
26.4 |
18.5 |
16.4 |
7.9 |
2.9 |
5.9 |
||
BALANCE SHEET |
|||||||||
Fixed Assets |
|
|
108.0 |
162.9 |
872.1 |
685.3 |
827.3 |
941.5 |
971.4 |
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 |
501.0 |
547.8 |
||
Current Assets |
|
|
131.6 |
313.8 |
1,008.6 |
1,603.5 |
1,855.1 |
1,946.0 |
2,089.8 |
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 |
33.1 |
37.3 |
||
Cash & cash equivalents |
39.0 |
33.1 |
118.4 |
141.2 |
73.7 |
87.9 |
46.6 |
||
Other |
71.1 |
248.2 |
846.2 |
1,424.0 |
1,724.1 |
1,809.1 |
1,988.5 |
||
Current Liabilities |
|
|
(90.5) |
(299.0) |
(1,357.8) |
(1,792.8) |
(2,100.1) |
(2,332.7) |
(2,557.8) |
Creditors |
(21.2) |
(33.9) |
(47.5) |
(62.9) |
(65.7) |
(69.9) |
(75.6) |
||
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) |
(2,258.3) |
(2,477.6) |
||
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 |
411.5 |
405.8 |
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 |
411.5 |
405.8 |
CASH FLOW |
|||||||||
Op Cash Flow before WC and tax |
19.7 |
28.4 |
31.2 |
41.2 |
33.3 |
25.5 |
38.2 |
||
Working capital |
(9.2) |
2.0 |
3.6 |
31.7 |
(68.4) |
10.9 |
(6.8) |
||
Exceptional & other |
(1.2) |
(0.7) |
(12.7) |
(17.3) |
0.4 |
(16.4) |
0.0 |
||
Tax |
(2.8) |
(0.6) |
0.7 |
(5.4) |
(4.5) |
7.0 |
2.0 |
||
Net operating cash flow |
|
|
6.5 |
29.2 |
22.8 |
50.2 |
(39.2) |
27.1 |
33.4 |
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) |
14.2 |
(21.2) |
||
Opening net debt/(cash) |
|
|
(39.9) |
(39.0) |
(18.1) |
(82.5) |
(103.0) |
9.7 |
(4.5) |
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 |
(4.5) |
16.8 |
Source: EML Payments, Edison Investment Research
|
|
Research: Healthcare
Actinogen announced that the first patient was randomised and treated in its XanaCIDD Phase II study in major depressive disorder (MDD) assessing the effects of lead candidate Xanamem on cognitive performance and depression. The study aims to enrol about 160 patients who have persistent depressive symptoms and cognitive impairment (CI) despite taking standard-of-care (SoC) anti-depression therapy. Having demonstrated the ability to improve cognition in two trials (XanaHES and the Phase Ib portion of XanaMIA) in healthy adults, Actinogen is confident that Xanamem can exert similar cognitive improvement effects in MDD patients; this study will also explore whether the drug can have effects on depression as well. Results are expected in late 2023 or early 2024.