An impressive record high for the Money3 business following a strong year of profitable growth.
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Money3 share price lifts to record highs after jump in earnings
Money3 delivered double-digit increases across all key operating metrics, signalling a great year for the consumer and commercial finance company. Highlights include:
Loan book of $601 million, up 38.5% on FY20
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $80.9 million, up 64.8%
Earnings per share of 19.85 cents, up 64.3%
Net profit after tax (NPAT) of $39.2 million, up 76.6%
Fully franked final dividend of 7 cents per share, or a full year dividend of 10 cents per share
A stellar year for Money3
The Money3 share price is rallying to record highs thanks to a record-breaking FY21. The company cited accelerating growth in the second half with an expansion of its loan receivables book to over $600 million at year end.
The company was pleased to highlight that it had “significantly broadened its product mix and target market”. It has three business units operating across personal lending, automotive consumer and commercial lending in the Australian and New Zealand market.
This expansion in product offering was driven by the company’s two acquisitions in FY21.
In January, Money3 completed its acquisition of Automotive Financial Services (AFS), which has since experienced a 400% increase in new loan originations in the first six months of operation in the Group.
In the same month, the company acquired GMF Australia, a subsidiary of General Motors Financial Company Inc. The acquisition announcement advised that the move will increase the Group’s automotive loan book by approximately $23 million.
Alongside strong organic growth and growth through acquisitions, the company was proud to highlight its “diversified funding base, underpinned by multiple major banks, to facilitate continued growth of all business units”.
Money3’s Managing Director and CEO Scott Baldwin hailed the results, saying:
We are experiencing exceptional lending momentum which has led to over $600.0 million of receivables at the end of FY21. High consumer demand for financing the purchase of new or used vehicles and leisure products like caravans is expected to continue through FY22.
Multiple funding sources and solid funding capacity puts the Group in a very strong position to continue to deliver strong growth in FY22.
The Group continues its investment in technology to make our customer interaction increasingly easy and convenient. Customers will be able to use mobile devices to apply for a loan, manage their payments, book a
service, post questions to the company and interact with the Group in a seamless way
Momentum to carry through to FY22
Money3 said that “demand for the Group’s products is at record levels across all three business units, with the Group extremely well-positioned for growth exceeding 20%, which is in line with analysts’ consensus”.
The Money3 share price is up a solid 20% year-to-date and rallied more than 76% in the last 12 months.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.