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

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.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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