AI assistant
Slovar Limited AGM Information 2015
17773_rns_2015-11-29_fcf5e4aa-2258-4e69-830e-733606d840ab.pdf
AGM Information
Open in viewerOpens in your device viewer
Annual General Meeting
Melbourne
30th November 2015
Vaughan Webber | Chairman
Scott Baldwin | Managing Director
money3
Track Record of Growth
money3
FY15 Overview
Total revenue of $69.4 million, an increase of
59.5%
(2014: $43.5 million)
Generated $20.1 million profit before tax an increase of
82.7%
(2014: $11.0 million)
Net profit after tax of $13.9 million, an increase of
78.2%
(2014: $7.8 million)
Diluted EPS of 9.91 cents per share, increase of
29.5%
(2014: 7.65 cents)
Dividends for the year increased by
16.7%
to 5.25 cents
(2014: 4.5 cents)
Net Loan receivables increased to $130.2 million, increase of
77.9%
(2014: $73.2 million)
198,307 loans settled, an increase of
65.7%
(2014: 119,696)
In December 2014 and January 2015 raised $28.6 million via the issue of 20.2 million shares
money3
FY15 Results
| FY15 | % ↑ | FY14 | % ↑ | FY13 | |
|---|---|---|---|---|---|
| Revenue | 69.4M | 59.5% | 43.5M | 90.8% | 22.8M |
| EBIT | 23.4M | 98.3% | 11.8M | 114.5% | 5.5M |
| NPAT | 13.9M | 78.2% | 7.8M | 116.7% | 3.6M |
| EBIT as % of Revenue | 33.7% | 28.0% | 24.3% | ||
| Bad Debts as % of Revenue | 14.6% | 14.0% | 10.7% | ||
| Net Receivables (Net Deferred Revenue) | 130.2M | 77.9% | 73.2M | 127.3% | 32.2M |
| Borrowings | 35.2M | 20.1% | 29.3M | 876.7% | 3.0M |
| Net Assets | 122.7M | 51.3% | 81.1M | 58.4% | 51.2M |
| No. of Shares | 129.2M | 20.5% | 107.2M | 37.1% | 78.2M |
| Dividend Per Share | 5.25c | 16.7% | 4.5c | 12.5% | 4.0c |
| Diluted EPS | 9.91c | 29.5% | 7.65c | 30.3% | 5.87c |
money3
FY15 Lending Summary
| By Loan Contract Type | Loan Numbers | % of Loan No. | Cash Out | % of Cash Out | Gross Loan Book^ |
|---|---|---|---|---|---|
| SACC* < $500 | 101,791 | 51.3% | 21.6M | 11.8% | 4.3M |
| SACC* $501 - $1,000 | 57,573 | 29.0% | 36.1M | 19.6% | 13.1M |
| SACC* $1,001 – $2,000 | 19,127 | 9.7% | 24.5M | 13.4% | 9.4M |
| AOC*** / MACC ** | 10,750 | 5.4% | 29.9M | 16.3% | 22.6M |
| Secured Loans (AOC) | 9,066 | 4.6% | 71.4M | 38.9% | 105.7M |
| GRAND TOTAL# | 198,307 | 100% | 183.5M | 100% | 155.1M |
money3
*Small Amount Credit Contract – SACC
**Medium Amount Credit Contract – MACC
***All Other Credit – AOC
^ Loan book is the gross loan receivables # The above figures have not been reviewed or audited by the company's auditors
FY16 Q1 by Distribution Channel
Brokers
100+ Nationally
Branches
60+ Nationally
Online
National
| FY16 Q1 | FY15 Q1 | |
|---|---|---|
| Net Receivables* | $106.7M | $61.2M |
| Loan Receivables | $117.8M | $66.4M |
| Revenue | $10.7M | $6.3M |
| EBIT | $7.4M | $4.6M |
| Corporate Overhead# | $0.9M | $0.8M |
| Interest† | $0.6M | $0.5M |
| PBT^ | $5.9M | $3.3M |
| No. of Loans | 2,781 | 1,933 |
| FY16 Q1 | FY15 Q1 | |
| --- | --- | --- |
| Net Receivables* | $23.5M | $22.5M |
| Loan Receivables | $35.5M | $34.0M |
| Revenue | $8.4M | $8.1M |
| EBIT | $2.3M | $2.7M |
| Corporate Overhead# | $1.2M | $1.0M |
| Interest† | $0.2M | $0.2M |
| PBT^ | $0.9M | $1.5M |
| No. of Loans | 38,246 | 32,318 |
| FY16 Q1 | FY15 Q1** | |
| --- | --- | --- |
| Net Receivables* | $10.0M | $1.9M |
| Loan Receivables | $13.5M | $3.1M |
| Revenue | $3.9M | $0.5M |
| EBIT | $0.6M | $0.1M |
| Corporate Overhead# | $0.2M | $0.2M |
| Interest† | $0.1M | $0.02M |
| PBT^ | $0.3M | ($0.1M) |
| No. of Loans | 16,078 | 624 |
money3
Corporate Overheads based on management allocation. (50% Branch / 40% Broker / 10% Online)
*Net Receivables equals Gross Loans Receivables less Unearned income and Doubtful Debt Provisioning.
**Cash Train purchased in Dec 2014 and not included in Q1FY15 results.
†Interest allocated based on Net Receivables ^Profit Before Tax = EBIT – Overhead Allocation – Interest Allocation
Strategic Review (Exit Unsecured SACC business)
- Your board resolved to exit Unsecured Small Amount Credit Contract (SACC) business operations
- to enable the business to secure further lower cost funding
- to enable the business to secure traditional banking services
-
to focus on the larger market opportunity Secured lending presents
-
While Unsecured business operations continue to be profitable, after exit the future focus of Money3 will be on the Secured lending business and related growth opportunities
-
Currently working through various exit options with SLM Corporate to maximise shareholder value
-
Several interested parties have registered to receive the Information Memorandum about the Unsecured business operations
money3
Growth Opportunities – Secured Lending
Existing market growth opportunities
- Money3's current share is less than 1% of the used car market
- In FY14, 1.1M¹ new cars sold in Australia worth an est. $40bn³
- The used car market estimates are between 2.5M² and 3M⁵ second hand cars sold annually
- Money3 estimates the non-conforming market to be 500 – 600 thousand cars annually
Broker opportunity
- Expansion of brokers in the WA market
- Expansion of brokers in the NSW market
Product opportunity
- New products to finance newer cars
- Broaden asset focus into bikes, boats, caravans and light commercial vehicles
money3
1 - http://www.fca1.com.au/sales
2 - http://www.veda.com.au/insights/dodgy-used-cars-cost-aussies-530m-each-year
3 - "RateSetter targets $40 Billion Car Loan Market" - Asia Pacific Banking and Finance 15th September
4 - https://www.experianplc.com/media/news/2015/q1-2015-safm-part-1/
5 - MANHEIM 2015 USED CAR MARKET REPORT "LOOKING BACK, DRIVING FORWARD"
Outlook
Year to date achievements
- Completed a strategic review of unsecured operations
- Completed capital raising via placement and rights issue of $19.3M before costs
- New Appointments:
- Scott Baldwin - Managing Director
- Jenny Martin - Chief Financial Officer
- Craig Harris - General Manager Broker Division
Forecast
- Upgraded FY16 guidance to NPAT of $19m on a continuing business basis, up 36.7% on FY15
- Diluted EPS of 11.3 cents per share up 14% on FY15
Key Priorities
- Exit Unsecured (SACC) business operations
- Source further lower cost funding
- Secured product expansion
money3
Disclaimer
The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information.
This presentation has been prepared by Money3 Corporation Limited ABN 63 117 296 143 (Money3) on information available at the time of its preparation.
The Information is in summary form and does not purport to be complete. Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, reliability or correctness of the Information, opinions or conclusions, or as to the reasonableness of any assumptions.
Certain statements, particularly those regarding possible or assumed future performance, costs, returns, prices, potential business growth, industry growth or other trend projections, and any estimated company earnings or other performance measures, are, or may be, forward looking statements. Such statements relate to future events and expectations and as such involve unknown risks and uncertainties, many of which are outside the control of or unknown to Money3 and its officers, employees, agents or associates. Actual results, performance or achievement may vary materially from any forward looking statements and the assumptions on which those are based, and such variations are normal and to be expected.
The Information also assumes the success of Money3's business strategies. The success of the strategies is subject to uncertainties and contingencies beyond Money3's control, and no assurance can be given that the anticipated benefits from the strategies will be realised in the periods for which forecasts have been prepared or otherwise. Given these uncertainties, Money3 cautions investors and potential investors not to place undue reliance on these forward-looking statements.
The Information may be changed at any time in Money3's absolute discretion and without notice to you. Money3 undertakes no obligation to revise the forward looking statements included in this presentation to reflect any future events or circumstances. Except as required by law or any relevant regulatory authority.
The release, publication or distribution of this Information in jurisdictions outside of Australia may be restricted by law and you should observe any such restrictions. This Information does not constitute investment, legal, accounting regulatory, taxation or other advice and the Information does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Information. You are solely responsible for seeking independent professional advice in relation to the Information and any action taken on the basis of the Information. No responsibility or liability is accepted by Money3 or any of its officers, employees, agents or associates for any of the Information or for any action taken by you on the basis of the information.
money3