Profit Guidance 01 November 2022

Finexia Financial Group Ltd (FNX:ASX) provides the following strategic update and earnings guidance for financial year 2023*.

Notwithstanding the challenging backdrop of accelerated inflation coupled with rising interest rates facing consumers and businesses, Finexia sees 2023 as an opportunity to consolidate on the solid financial performance in FY22. Finexia expects to grow topline revenue by approximately 5.0% (A$11.M). This marginal revenue increase is expected to result in equivalent growth in operating profit before tax, depreciation and amortisation (A$4.3M in 2023 -v- A$4.1M in 2022).

Approximately 59% of the forecast revenue is deemed recurring due to the contractually mandated nature of the income. Building resilience into the Group’s earnings profile through a deliberate and concerted focus on growing recurring, sustainable revenue remains a priority for the Executive.

The forecast revenue and profit are a direct result of expansion of the Group’s Private Credit loan book and growth in assets under management within the Funds Management division. These operations have higher elements of recurring revenue and by extension earnings visibility, reinforcing the Board’s commitment to resourcing these core divisions.

Increased opportunities in areas of lending that have largely been ignored or abandoned by traditional lenders presents further opportunity for income growth in the current year and beyond. In addition, a program of continuous cost improvement by identifying and extracting operational efficiencies across the Group’s operations has been implemented to enhance the net operating profit.

Aspects of the aforementioned forecasts remain contingent on market and macro-economic conditions, access to adequate capital (funding) and the performance of the Group’s significant investments.

For more information please contact:

Neil Sheather, Managing Director

1300 88 61 03

To read the Profit Guidance Announcement click here.

* The guidance relies on internal forecast modelling based on origination mandates and investor commitments at hand as at this date.