CHICAGO--(BUSINESS WIRE)--Goudy Park Management today announced it has increased its stake in Planet Payment (PLPM) to over 2,400,000 shares and now owns over 4.3% of the common shares outstanding. Goudy Park Management has been pleased with the initial steps taken by new CEO, Carl Williams to reduce the company's operating cost structure and improve EBITDA margins. It also is confident that Planet Payment management has several initiatives underway to re-accelerate top line growth to a low double digit level in 2015 and beyond and maintain EBITDA growth of 20% or more for the next several years.
Goudy Park Management is encouraged by management's and the Board's efforts to increase shareholder value by adopting a share repurchase plan during the fourth quarter of 2014 to address the wide valuation gap that exists between Planet Payment and its payment company peers. Given the company's 85 percent incremental margins and accelerating free cash flow, the company will have the ability to reduce the share count by 15-20 percent over the next several years and aggressively return cash to shareholders. Goudy Park Management LLC remains confident that Planet Payment can generate $16-$20m in EBITDA and be worth $3.50-$4 over the next 2 years.
Goudy Park Management is fully supportive of the management team at Planet Payment and intends to proactively engage its Board of Directors about ways to further increase shareholder value in 2015.