ASX-listed Earlypay announce increased net profit and cash flow
ASX-listed Earlypay have released its financial results for the six-month period ending 31 December 2024, with the key highlights being net profit up 24% to $2.6 million and operating cash flow of $4.8 million, up 186% compared to the previous corresponding period.
Earlypay CEO, James Beeson, said, “Earlypay returned to growth in both invoice finance and equipment finance in the first half. Funds in Use growth in these core products has more than offset the deliberate reduction in trade finance exposure, reflecting our focus on sustainable and profitable growth.
“We remain committed to executing our vision of becoming the first-choice provider of invoice finance to Australian SMEs. To achieve this, we continue to invest in innovation that makes invoice finance simpler and more accessible for SMEs and their referrers.
“In addition to strengthening our traditional referrer channels, we are enhancing growth through non-traditional distribution channels, including embedded finance. This remains a core strategic priority and is expected to contribute a growing share of new business in the coming periods.
“Our risk management enhancements over the past two years are delivering tangible benefits, with lower actual credit impairment expense and reduced expected future credit impairments. The portfolio is now more diversified and focused on invoice finance and equipment finance – products where we have core competence. Net Revenue Margin has expanded, supported by our focus on smaller, underserved SMEs as well our warehouse facilities that were refinanced at the beginning of 2024.
“From a capital management perspective, we have taken significant steps to optimise our balance sheet. Over the last 18 months, over $25 million in capital has been unlocked, enabling us to reduce corporate debt, acquire Timelio and buy back shares. The company continues to be in a very strong capital position. The remaining $5 million of corporate debt is expected to be repaid in April 2025, and an additional $8 million in surplus capital will remain available for further capital management initiatives.
“Earlypay is now well-positioned to deliver strong and sustainable growth in funds in use, profitability and Earnings per Share,” Beeson ended.
