Market Update

Market Update

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Posted on: 7 June 2023

Since the issuance of the Company's guidance on February 3, 2023, notable shifts in macro-economic conditions have introduced considerable headwinds and heightened uncertainty. The Company issues the following update:

  • Rights Issue Completion: The Company has achieved a significant milestone with the successful conclusion of the rights issue, generating $4.6 million. This achievement stands as a vote of confidence in our accomplishments to date and the strategic path forward.
  • Revised FY23 Earnings: Management has adjusted the FY23 after-tax earnings forecast to a range of A$2.90M - $3.05M, a revision from the previous estimate of $4.3M. This revised outlook should be perceived as a temporary delay in revenue recognition, rather than a permanent erosion of our financial standing.
  • Cash Profit: As of March 31, 2023, the Company reports a Cash Profit of A$2.90M.
  • Private Credit Loan Book: Finexia's management of the Private Credit loan book has seen substantial growth, reaching $123M as of April 30, 2023, marking a 77% increase since the commencement of FY23.
  • Loan Book Projection: The loan book is anticipated to reach $185M by September 30, 2023, subject to the implementation of a wholesale funding facility and the finalization of loans in the Childcare Income Fund, which have received approval and acceptance from borrowers.
  • Dividend Commitment: The Directors affirm their commitment to distributing 30-35% of retained earnings to shareholders at the conclusion of this financial period.

Strategic Priorities:

  • Wholesale Funding Solution: Prioritizing the establishment of a competitive and flexible wholesale funding solution.
  • Private Credit Book and Childcare Income Fund Growth: Focusing on accelerating the growth of the Private Credit book and the Childcare Income Fund.
  • Investment in People, Technology, and Systems: Continued investment in human resources, technology, and systems to support a sustainable profit trajectory.
  • Sales and Distribution Capability Expansion: A significant investment to expand the Company's Sales and Distribution capability.

 

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