Stocks of the Hour: Laybuy Holdings, Euro Manganese, ELMO Software

Company News

by Tim McGowen

The BNPL sector today has continued an extraordinary bounce as the sector surges higher albeit from very depressed levels – with very little stocks specific news – other than some scraped merger activity between zip & sizzle & perhaps a short squeeze on short sellers. All BNPL stocks like ZIP, Sezzle,  Openpay & Splitit are higher this morning. Perhaps LBY's response to an ASX speeding ticket this morning gives some insight into the sector announcing that the Board is exploring various strategic alternatives and capital raising options;  the company is having active discussions with several parties and might result in a sale or partial sale of the business; if these processes are ultimately unsuccessful, the Company will exit or restructure its UK operations.  Shares in LBY are trading 56 per cent higher at 12 cents.

Euro Manganese (ASX:EMN) announced today its Positive Feasibility Study Base Case Results for the Chvaletice Manganese Project; with an After-Tax NPV8% of US$1.34 Billion, IRR of 21.9% -with a 4% pay back period on initial CAPEX expenditure of $US757m. Dr. Matthew James, Euro Manganese’s President and CEO, commented: “I am extremely pleased with the results of the Feasibility Study, which further validate the financial credibility of the Chvaletice Manganese Project, even in the current inflationary environment and using conservative risk-adjusted pricing. The strength of the Project economics, its green credentials and the forecast demand from the EV industry for our highly specialized products support a wide range of financing alternatives". Shares in Euro Manganese are trading 13.3 per cent higher at 34 cents.

ELMO Software Limited (ASX:ELO) today announced its preliminary 2022 FY results, reporting strong growth in annualised recurring revenue, cash receipts and improved operating cash flow. The Group recorded underlying EBITDA of $7.1 million, up $6.5 million pcp and above the top end of the upgraded guidance range. The cash balance was $47.9 million. Total operating cash outflow reduced to negative $17.4 million, a 34% improvement pcp. Commenting on the result, CEO Danny Lessem said that FY22 was a strong year for the ELMO Group underpinned by high growth and increasing operating leverage. Shares are trading 13.2 per cent higher at $2.75.

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