ASX-listed Butn announce record 1H24 performance

ASX-listed Butn announce record 1H24 performance

ASX-listed Butn have announced its results for the six months ended 31 December 2023 (1H24), with the key highlight being origination growth of 12% to $241 million.

Butn Co-Founder and Co-CEO, Rael Ross said, “We have demonstrated growth in 1H24, delivering record originations and revenue at an improved revenue margin. Our platform distribution channel continues to develop, with a third consecutive record of quarterly originations and revenue in Q2FY24. The increased revenue has led to an improved positive EBITDA result in 1H24, up more than double on the pcp, benefitting from the strategic operating leverage in the business model.

“Looking forward, due to business seasonality post-Christmas and January holidays, the third quarter is typically our most modest of the financial year, yet January 2024 saw an improvement on a pcp basis with continued growth, particularly in our platform business.”

Butn reported 1H24 origination growth of 12% to $241 million (1H23: $214 million). This included a record quarter in Q1FY24. Additionally, we recorded a monthly platform origination record in October, up 51% on the pcp. Q2FY24 was the third consecutive record platform origination quarter, following strong growth in this distribution channel.

The six months origination to 31 December 2023 represent 88% of the 12 months FY22 originations and 55% of the 12 months FY23 originations, demonstrating the sustained momentum and origination growth in the business.

Record originations have driven record revenue with 1H24 revenue of $6.8 million, up 24% on the pcp’s $5.5 million revenue.

Revenue margins increased from 2.6% in the pcp to 2.7%, through improved industry mix, an increasing contribution from the platform channel at higher margins and pass through of some pricing adjustments.

Butn has benefitted from its strategic operating leverage, which has seen record revenue in 1H24, earned at an improved revenue margin. This has led to positive EBITDA result of $1.4 million in 1H24 (1H23: EBITDA of $0.6 million).

In addition, bad debts written off for 1H24 were low and under 0.1% of total originations.

Butn’s platform distribution channel delivered record originations and revenue in 1H24. This culminated in October 2023’s platform originations record, equating to over 30% of that month’s total originations. The strategic MYOB partnership continues to grow strongly, evidenced by a record monthly originations, following continued adoption of the embedded funding solution to a broader MYOB business user base during the period.

Receivables increased to $84.5 million (1H23: $74.8 million) with origination growth driving the fast-turning receivables book which on average turns six times per annum. To support this growth, Butn successfully rolled the 2018-1 bond in October 2023 through an additional tap of the 2019-1 bond, supporting future receivable book growth.