The Harmoney (ASX: HMY) share price is up 10.7% today following the release of a business update. Here’s what the company announced.
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The Harmoney share price is up 10.7% during afternoon trade, swapping hands for $1.75.
The consumer credit company provides online direct personal lending services in Australia and New Zealand. Let’s take a closer look.
What did Harmoney announce?
In its release, Harmoney reported total group originations for the month grew to NZ$37.8 million. This represents an 800% increase on the NZ$4.2 million achieved over the prior corresponding period.
The record results saw a surge in customer numbers after suffering a heavy impact from COVID-19 during 2020. In New Zealand particularly, loan originations stood at NZ$25.3 million, reflecting a 1,388% jump over the same time last year. Across the Tasman, Australia delivered NZ$11.5 million, a lift of 379% from the previous comparable period.
In addition, the company highlighted its Libra 1.7 technology in doubling the conversion of new customer loans in Australia. Cumulative origination volumes are forecasted to exceed $300 million by FY20, signalling a compound annual growth rate (CAGR) of 180%.
A new updated version, Libra 1.8, is slated for launch in New Zealand around early July this year. Harmoney is predicting that the newer technology will have a similar effect by boosting new lending in New Zealand.
Group receivables at the end of April came to NZ$490 million, slightly above the $485 million attained the month before. Harmoney stated that this metric is forecasted to grow considerably during the second half of 2021.
Lastly, the company also expanded its Australian bank warehouse facility to $177 million and extended it until January 2023. This brings undrawn warehouse capacity to more than $247 million.
Harmoney CEO, David Stevens commented:
Harmoney has accelerated its data-driven marketing program following our listing last November, significantly increasing new customer originations.
…The business is building strong momentum in Australia and has a clear and immediate plan in place for New Zealand originations growth.
About the Harmoney share price
Since listing in late November, Harmoney shares have failed to take off, down almost 50%. Year-to-date performance has fared no better, also sinking roughly 40% for investors.
Harmoney presides a market capitalisation of around $184 million, with approximately 100 million shares on issue.
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Motley Fool contributor Aaron Teboneras 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.