Laybuy Holdings Ltd (ASX: LBY) shares were sinking today despite the company's update on a key new appointment in the United Kingdom. By the market's close, the Laybuy share price had fallen 3.7% to 65 cents. For context, the All Ordinaries Index (ASX: XAO) also had a pretty average day, closing around 1% lower.
Let's take a look at what the buy now, pay later (BNPL) provider announced.
New general manager
Investors were selling Laybuy shares despite the company progressing its plans to drive growth across the United Kingdom.
According to its release, Laybuy has appointed Mr John Gillian into a newly created role of general manager of the UK and Europe. Laybuy highlighted the appointment as an important step in capitalising on its opportunities within the UK market.
In Laybuy's FY21 fourth-quarter results released last month, it highlighted that its UK operations delivered annualised gross merchandise value (GMV) of NZ$358 million. This represents a 230% jump (NZ$108 million) on the prior comparable period. Most importantly, the strong result makes the UK Laybuy's largest market. The company said its UK merchants, along with strategic partnerships, are driving the rapid growth. Laybuy shares also slumped on the day the results were released.
Furthermore, Laybuy expects to gain robust instore traction with the United Kingdom launch of its 'Tap to Pay' product this month. The feature is seen as a way forward in a post-COVID-19 environment. Both Australia and New Zealand successfully rolled out the product in Q3 FY21.
In the role, Mr Gillian will be responsible for all UK operations, including developing a strategy to support growth. Management noted Mr Gillian's achievements in holding the position as vice president for global adtech company, Criteo.
Laybuy managing director Gary Rohloff commented:
John's proven track record in working with some of the largest merchants in the world at the most senior level, combined with his passion for championing the customer makes this appointment a particularly exciting one for Laybuy's growth plans.
Mr Gillian will be based in London and commence the role from next month.
Laybuy share price summary
Over the past 12 months, the Laybuy share price has fallen by more than 65% and is 50% down year to date. The company's shares have been trending lower ever since its listing in early September 2020.
Based on the current share price, Laybuy presides a market capitalisation of roughly $114 million, with 174 million shares outstanding.
