Earnings Guidance Commentary | Finexia Financial Group
4th Floor 20 Bridge Street Sydney, NSW, 2000
EARNINGS GUIDANCE COMMENTARY FOR FY22
Finexia Financial Group (Finexia) wishes to provide its earning guidance for the 2022 financial year. Given the backdrop of COVID-19, recent hostilities in the Ukraine, rising inflationary indicators, amongst other global challenges, financial markets are being viewed by most analysts as uncertain. As a result, your board considers it prudent to keep shareholders informed of Finexia’s positive financial position, including anticipated Gross Revenue and EBIT for FY22.
Following on from a strong first half to 31 December 2021 (NPAT A$2.56M), the second half is anticipated to be marginally restrained as a result of possible reduced equities trading volumes.
In summary, Finexia’s Executive estimates gross revenue of circa A$9.5M for FY22 (A$5.9M in 2021 > 61% increase on the previous corresponding period). Gross revenue of A$9.5M is expected to result in EBIT of A$3.8M for FY22. This is a significant improvement on the previous year (EBIT A$1.093M > 248% increase on the previous corresponding period).
These estimates may be impacted by events outside of its control including an upward shift in domestic interest rates and a ‘risk off’ background being played out in global investment markets as geopolitical aggression heightens in Ukraine. The Company’s businesses have been unaffected to date, however, management continues to closely monitor any impacts and will advise the market accordingly.
The robust financial performance year to date and strong recurring revenue growth across the business units have further strengthened the group’s cash position of A$4.6M as disclosed in the half year accounts at 31 December 2021. It is anticipated that the Group’s cash position will be utilised across a number of projects, investments and further debt reduction in the run to 30 June 2022.
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