The EML Payments Ltd (ASX: EML) share price is having a stellar start to the week.
In early trade, the embattled payments company's shares were up as much as 11% to 64 cents.
The EML share price has pulled back a touch since then but remains up by 7% currently.
Why is the EML share price rocketing higher?
Investors have been buying the company's shares today after it announced a raft of changes. These include new leadership and operational priorities, as well as a strategic review.
According to the release, the company's CEO, Emma Shand, has stepped down from her role after just nine months. She decided to resign in response to the change in operational priorities and will be replaced on a temporary basis by Kevin Murphy.
Murphy will be EML's interim CEO while it undertakes a global search for a permanent CEO.
He is a former managing director of Bank of Ireland's cards business and has a deep understanding of the global payments industry. The release also notes that Murphy has significant regulatory experience (including with the Central Bank of Ireland) and has been involved in several successful business turnaround scenarios for private equity funds.
What are its operational priorities?
EML revealed that its board has decided to transition away from the previous long-range strategy announced last year.
Instead, it will now focus on solving the challenges it believes the business is facing today. This includes four key priorities: remediation, cost optimisation, targeted growth in core businesses, and talent retention.
Strategic review
Finally, the company revealed that its strategic review will consider all options available to the board. This includes a potential sale of all or parts of the business in order to maximise shareholder value.
Its chair, Luke Bortoli, commented:
The renewed Board has spoken with internal and external stakeholders and formed a view on the urgent priorities for the business. We are focused on doing the right thing by our people, customers, regulators and shareholders and we are committed to taking actions that will help the business move through its immediate challenges, deliver sustainable growth in the medium to long term and maximise value for shareholders.
We are pleased to welcome Kevin Murphy as interim Group CEO and are excited to have an executive of Kevin's calibre join EML. His understanding of the Irish and broader European regulatory environments, previous interactions with the Central Bank of Ireland and deep experience in the payments sector are perfectly aligned to addressing the needs of our business today.
