Lender Metrics Credit Partners, which moved to a 52.5 per cent holding in Payright earlier this month, has acted quickly to overhaul the board and management of the struggling buy now pay later company.
Payright announced on Wednesday that co-founders and co-chief executives Myles Redward and Piers Redward have stepped down, along with chief financial officer David Leach, chair Peter McCluskey and non-executive directors Paul Cowan and Lindley Edwards.
The interim CEO is Stewart Creighton, on secondment from MCH Corporate Services (a Metrics subsidiary).
The interim CFO is Tom Kellaway, also on secondment from MCH Corporate Services.
Alan Griffiths is the new chair and Metrics managing partner Andrew Lockhart is on the board.
Myles Redward and Piers Redward have also stepped down from the board but have accepted new executive roles “focused on continuing to build out the company’s consumer finance capability”.
Metrics is non-bank corporate lender, funded through a range of wholesale and ASX-listed managed funds. It has a total of A$13 billion of funds under management.
Lockhart told Banking Day that Metrics’ Payright shareholding is an investment by Metrics and is not part of any of its funds.
“We see a business opportunity here. Since we launched in 2013 we have focused on the corporate market but in the past couple of years we have been looking for opportunities to diversify. We have invested in Bigstone Capital, an asset and equipment finance company in the SME market.
“We plan to develop Payright’s product set, including business finance products.”
Metrics will have its work cut out for it knocking Payright into shape. In 2021/22 it reported revenue of $16.3 million and a loss of $12.7 million. Net cash used in operating activities was $41.9 million (up from $32.5 million the previous year), while cash and cash equivalents were $12.7 million.
Metrics got involved with Payright in May last, when Payright arranged a funding round that included the establishment of a warehouse facility, an equity placement and the issue of convertible notes.
There were a number of funders and investors, including Metrics. At June 30 Metrics held 14.5 million convertible notes and a 9.5 per cent shareholding through a member company MCH Investment Management Services.
At the end of November, Payright launched another equity capital raising. MCH Investment Management committed to take up its full entitlement and was also a sub-underwriter. As a result of limited participation by other shareholders, Metrics’ stake in Payright increased to 52.5 per cent.