- Business Decision: EML Payments is winding down its Irish subsidiary, PFS Card Services Ireland Ltd. (PCSIL), due to it being “no longer commercially viable and sustainable.”
- Financial Impact: Although presently solvent, EML Payments claims that PCSIL would incur a $13.1 million (AUD 20 million) loss during FY24 if it continued to operate in its current form.
- Operational Cease: PCSIL, a pre-paid card provider acquired by EML in 2019, has ceased operations in January, following deconsolidation from EML Group.
- Liquidation Process: Interpath Advisory is appointed as the provisional liquidator for PCSIL based on recommendations citing sustained earnings losses, unsustainable capital investment requirements, deteriorating trading performance, and limited commercial attractiveness.
- Financial Exposure: EML estimates a remaining cash exposure of $13.1 million (AUD 20 million) for the repayment of intercompany balances owed by EML Group entities to PCSIL, with a target completion in the next nine to 12 months.
- Impairment Charge: A one-off non-cash impairment charge of around $16.5 million (AUD 25 million) is expected due to the liquidation, representing the removal of net assets of the PCSIL business and associated intangibles from EML’s financial statements.
- Chairman’s Statement: Luke Bortoli, chairman of EML, states that PCSIL is “not commercially viable for future investment,” and the decision to shut it down will allow EML to redirect resources and capital to its core businesses.
