MONEYME delivers record revenue and now raising Equity Capital
ASX-listed Australian fintech MONEYME has announced its financial results to 30 June 2022 with record revenue as it now looks at a capital raise.
FY22 Key Highlights:
- Completed the acquisition of SocietyOne in March 2022 with material cost synergies already delivered ahead of schedule
- Gross customer receivables of $1.35 billion, up 305% year on year
- Originations of $1.1 billion (42% secured asset finance), up 191% year on year
- 4x increase in external securitisation funding facilities to $1.7 billion
- Autopay secured asset finance book balance of $445 million, up 70x year on year
Strong financial returns:
- Cash NPAT of $20 million, up 70% year on year
- Gross revenue of $143 million, up 148% year on year
- Contracted revenue of $398 million, up 305% year on year
Clayton Howes, MONEYME’s Managing Director and CEO said, “MONEYME has achieved a year of phenomenal growth, while also delivering growing cash profits, increasing our credit quality, and expanding our funding capacity to support continued momentum into the next financial year. I am especially proud of the sensational demand for our Autopay product, the successful and ahead of plan integration of SocietyOne into the group, and our continued commitment to driving profit with purpose.
“Looking ahead, we have our sights set on profitable growth that leverages new additions to our product portfolio via both expanding and more cost-effective distribution channels. Our continued diversification of products and assets, scale advantages, and further synergies from the SocietyOne acquisition will increase our resilience as we close in on the major banks with a revamped brand identity that appeals to the mass market.
“Our agility through both culture and technology enables us to move fast as structural shifts in the market present new opportunities. MONEYME’s speed is a strength in any market environment, but especially in a changing one.”
FY22 Operational Highlights
- Autopay delivered exponential growth in the year, quickly establishing itself as best-in- class product for car finance in Australia.
- SocietyOne acquisition completed with $7.5 million of expense savings realised as at 30 June 2022, with ~$20 million of expense savings expected to be realised (up 18% on ~$17 million planned). Consolidation of functions between MONEYME and SocietyOne is expected to be completed by the end of calendar year 2022, ahead of plan.
- Improved loan book credit quality with 6% provisions, 23% lower year on year.
- Increased loan value to higher credit quality customers, increasing the average customer Equifax profile to 704.
- Increased cost efficiency by 41%, lowering office operating costs to receivables ratio to 6.8%.
- Entered into syndicated facility agreement with leading Australian investment firm, Pacific Equity Partners, which was initially drawn to $50 million, and then upsized to $75 million to support the completion of the SocietyOne acquisition.
- Delivered amazing experiences to our customers, with more than 70% of customer calls answered within 8 seconds. Customers rated us with a Net Promoter Score of 76 and the average Google reviews are 4.7 out of 5 stars.
- Continued to increase the lifetime value on the portfolio by increasing the average receivable value and remaining receivable term by 211% and 38% respectively.
Equity Raise
MONEYME is undertaking a fully underwritten placement to raise $20 million through the issue of 40 million new fully paid ordinary shares (“New Shares”) as follows:
- An unconditional component to raise approximately $17.84 million through the issue of approximately 35.7 million New Shares (“Unconditional Placement”); and
- A component which is conditional upon shareholder approval under ASX Listing Rule 7.1 to raise approximately $2.16 million through the issue of approximately 4.3 million New Shares (“Conditional Placement”)
The proceeds from the equity raising will be utilised for equity subordination requirements in MONEYME’s warehouse facilities to support continued loan book growth, and payment of associated upfront commissions to brokers. They will also be used to fund transaction costs and support MONEYME’s existing debt facilities.
In its normal course of business, MONEYME will continue to explore opportunities to expand new and existing debt capital facilities to support its balance sheet and loan receivables growth.
The Placement Shares will be issued at a fixed price of $0.50 per Placement Share, representing a 28.1% discount to MONEYME’s last close price of $0.695 per share on Monday, 29th August 2022.
In addition to the Placement, MONEYME is undertaking a non-underwritten offer of New Shares to certain directors of MONEYME to raise $1.2 million (“Director Offer”). The Director Offer will be conditional upon shareholder approval.
The Placement Shares together with the New Shares to be issued under the Director Offer represent approximately 17.8% of current issued capital.
