Laybuy (ASX:LBY) share price slides despite key UK appointment

The Laybuy Holdings Ltd (ASX: LBY) share price sank lower today despite the company's update regarding its new UK GM appointment.

| More on:
ASX share price slide represented by investor slipping on banana skin

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares

A woman sits back and enjoys the view from a paraglider, indicating share price lifts for ASX travel and adventure shares
BNPL shares

Up 71% in 3 weeks, have Zip shares topped out?

Despite the stellar run higher, Zip shares are still trading at a fraction of their February 2021 highs.

Read more »

A woman sits on a chair smiling as she shops online.
BNPL shares

Why is the Zip share price the best-performing ASX 300 stock so far this year?

The best-performing ASX 300 stock of 2024 so far is an unlikely hero.

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
Share Gainers

If I'd put $5,000 into Zip shares on 9 October, here's what I'd have now!

The stars have been aligning for Zip shares.

Read more »

woman using affirm to pay
BNPL shares

Up 288% in 6 months, Zip share price tipped for more outsized gains

Zip shares have rocketed 288% in just six months.

Read more »

A businessman stacks building blocks.
BNPL shares

Up 93% since October, why are Block shares marching ahead again on Friday?

ASX 200 investors have been snapping up Block shares.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
BNPL shares

Zip share price up 58% in 7 trading days! What's going on?

This BNPL provider has been on fire recently. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
BNPL shares

Shares sold: Why Zip is under fire from its own shareholders

Some Zip investors had their shares sold without their knowledge.

Read more »

Sad woman with her hand on her head and holding a credit card.
BNPL shares

Zip share price tumbles 9% despite explosive first-half growth

Zip had a strong half and delivered a big improvement in key metrics.

Read more »