Hummgroup appoint directors, seek to bounce back from dour FY22 results

Hummgroup (ASX: HUM) have announced the latest appointments having seen the dramatic departure of five of its six board members in June, following the termination of a planned $250 million sale of its BNPL operations to financial services provider Latitude. 

The first of the new additions, Anthony Thomson, joins with years of experience in the area of finance having co-founded Europe’s first mobile-only bank Atom Bank PLC in 2013 and retail/commercial bank Metro Bank in London in 2010. More recently, Thomson sat as Chair of Australian BNPL provider Zip Co’s United Kingdom presence.

Thomson’s fellow addition to independent directorship of Hummgroup, Richard Hines, similarly brings years of experience in business and finance having served as CFO and COO for companies including Bank of Queensland Limited and Suncorp Limited. Hines also maintains positions of Non-Executive Directorship for Cash Converters International and Mackay Sugar Limited.

“I’m delighted to announce the appointment of Anthony and Robert, expanding the breadth and depth of experience on our Board as we continue to grow the business in a profitable and competitive manner,” said Hummgroup Chairman Andrew Abercrombie in a statement, “Anthony has proven experience in building and growing successful and disruptive financial institutions and has an unparalleled knowledge of both the UK and Australian financial services markets. Robert is an accomplished Non-Executive Director, drawing on over 35 years’ experience in finance, risk management and operational execution.”

The changes to Hummgroup’s board come as the company reels from poorer than expected FY22 results, headlined by a decline in Cash NPAT of over 25 percent for the brand and a 23 percent decrease in EBITDA when compared to results for FY21. Share prices for the group have seen an even greater decline in response, declining more than 50 percent since the beginning of the year to sit at 46 cents per share as of time of writing.

Buy Now, Pay Later providers are nonetheless expected to experience a period of potential boosts to growth over the next 12 months, as growing pressures in the economic climate are predicted to see more consumers consider the payment strategies as a method of withstanding the storms ahead.

“In times of heightened inflation and cost of living pressures, BNPL has become even more of an important budgeting tool for everyday consumers,” said Larry Diamond, co-founder and Global CEO of BNPL provider Zip, when celebrating the company’s positive FY22 results in late August, “That is why we have never felt more passionate about giving people the knowledge, access and the ability to control their financial lives so they can live every day with confidence.”

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