FNX Half Year Report

Calendar Icon Monday, 28th February 2022

Half Year Report 31 December 2021

REVIEW OF OPERATIONS

The Directors are pleased with the operational and financial performance of the business over the first half of the year. The Group continued to consolidate and expand its domestically focused financial services offering with the execution of several long-term strategic initiatives culminating in an underlying after-tax net profit for shareholders of A$2.55M in the six months. The Company’s top line revenue grew to A$5.97M, a 137% increase on the previous corresponding period, having been driven by growth in the Company’s loan book, its traditional securities dealing operations and fees generated by the Company’s managed funds business.

The satisfying aspect of the profit result is that it has largely been achieved in the absence of any revaluation of the Company’s proprietary investments. Stripping out the investment revaluations in the previous period of $3,039,544 further highlights the performance of the underlying businesses, best evidenced by NPAT of $2,566,652, an increase of 408% over the previous corresponding period. This result further validating the Company’s commitment to its strategic objectives. The profit has been driven by the performance of the Company’s core businesses; Finexia Securities and Creative Capital, working together to enable the Company to reach several key milestones in the period. The highlights during the six months, which should be read in conjunction with Note 7 – Segment Information include:

  • The launch of the Company’s flagship wholesale fund, Finexia Direct Accommodation Income Fund (FDAIF) in September 2021. The fund invests in a blend of holiday and permanent accommodation letting businesses primarily located in the coastal south-east pocket of Queensland. It is exclusively aimed at wholesale investors with a targeted return of 12% per annum with monthly distributions. Since launch, the Fund’s underlying businesses have exceeded the preliminary forecast and continue to perform beyond expectation. Investors have enjoyed a monthly cash distribution more than the targeted return (12% pa) and the Investment Manager remains confident this will continue for the foreseeable future. The Company has set ambitious growth targets for the Fund and remain vigilant to acquisition opportunities that fit within the Funds strict investment criteria.
  • Creative Capital’s private lending operations have continued to expand with growth in the overall size of the loan book. Creative’s deal pipeline into the second half of the year looks strong and the Directors remain confident the business can achieve its internal revenue forecasts.
  • Finexia Securities performed to forecast, with the focus remaining on client acquisition and retention. The business launched a number of investment products that were well received by clients and made a meaningful contribution to the business’ performance. The outlook for the securities dealing business looks solid for the remainder of the year, albeit in a more ‘risk-off’ investment environment.

Directors would like to take this opportunity to recognise the key ingredient in this positive operating response being our staff and your ongoing commitment and resolve. Thank you.

The Company is poised to launch a number of exciting complementary investment products in the second half of the year and is intending to provide a market update on these initiatives in the coming weeks. A part of that update will be an earnings guidance for the full year to 30 June 2022.

To read the half year report click here. Finexia Financial Group Half Year Report

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