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Slovar Limited AGM Information 2017
17773_rns_2017-11-23_c7b85e10-03bd-4a26-8ee4-5a5cf8669fd5.pdf
AGM Information
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money3
THORNEY OPPORTUNITIES LTD AGM
24 November 2017
Scott Baldwin
Managing Director
About Money3
Money3 is a national credit provider committed to servicing the needs of customers who cannot access funding from traditional lenders
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The Money3 Journey
- Approx. $10m unsecured loan book in first year on ASX to $277m loan book dominated by secured automotive receivables
- Revenues growth from $7m to $109m
- NPAT growth from $1m to $29m
- A 10 year overnight success poised for growth in the automotive lending space
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Continued Growth in Auto Lending
Gross Loan Book $m
Strong start to FY18 in secured automotive lending, providing continued diversification of revenues towards secured automotive.
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Continued Growth in Secured Loans Settled
Distribution of Auto Lending
Money3 estimates a market share of 2% of the addressable market.
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Financial Performance
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Key Highlights FY17
Group Performance
- Significant EBITDA margin improvement from FY16, 36.5% to FY17, 46.1%
- Gross loan book increased 37.4% to $273.2m up from $198.8m
- Reduction in bad debts as a percentage of gross loan book from 6.5% in FY16 to 4.5% FY17
- Record cash receipts of fees, interest and principal of $307.4m up from $282.6m
- $21.1m cash on hand at 30 June 2017 to fund business growth in FY18
- Early adoption in FY18 of new accounting standards
- Well placed for regulatory change
Secured Automotive lending
- Demand for secured automotive loans continues with 40.9% growth in loan book to gross loans of $213.9m
- Record full year revenue from secured automotive lending of $56.0m up 21.5%
- Cash receipts from secured automotive loans grew 34.4%
Branch & Online lending
- Completed Online lending platform integration into Money3 lending platform
- Completed closure of 13 branches into neighbouring sites including loan book run down
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Outlook
- Money3 estimates the addressable used car market in Australia is approx. 700,000 + vehicle sales per annum with Money3 writing 14,000 + automotive loans in FY17, which represents about 2% of the addressable market
- There is significant scope for Money3 to grow its market share of the used car finance market through leveraging the existing broker relationships established around the country
- Money3 continues to experience strong growth and demand for its loan products
- Strong cashflows will support continued loan book growth
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Additional Information Financial Metrics
money3
Financial Performance
| | FY17
$m | FY16
$m | $ Change
$m | % Change |
| --- | --- | --- | --- | --- |
| Revenue | 109.6 | 96.7 | + 12.9 | ↑ 13.3% |
| Expenses | 59.0 | 61.4 | - 2.4 | ↓ 3.9% |
| EBITDA | 50.6 | 35.3 | + 15.3 | ↑ 43.3% |
| EBITDA as % of revenue | 46.1% | 36.5% | | |
| NPAT | 29.1 | 20.1 | + 9.0 | ↑ 44.8% |
| NPAT as % of revenue | 26.6% | 20.8% | | |
| EPS (Basic)
cents per share | 18.81 cps | 14.21 cps | + 4.6 cps | ↑ 32.4% |
| DPS
Cents per share | 5.65 cps | 5.25 cps | + 0.4 cps | ↑ 7.6% |
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Cashflow
| | FY17
$m | FY16
$m | $ Change
$m | % Change |
| --- | --- | --- | --- | --- |
| Receipts from customers¹ | 307.4 | 282.6 | + 24.8 | + 9% |
| Payments to suppliers & employees | - 39.3 | - 42.1 | + 2.8 | - 7% |
| Net interest and finance expense | - 6.3 | - 3.5 | - 2.8 | + 80% |
| Income tax paid | - 15.7 | - 9.9 | - 5.8 | + 59% |
| Cashflow from operating activities | 246.1 | 227.1 | + 19.0 | + 8% |
| Funds advanced for new loans | - 275.8 | - 237.9 | - 37.9 | + 16% |
| Net Cash used in operating activities | - 29.7 | - 10.8 | - 18.9 | + 175% |
¹ Includes receipts from cheque cashing which decreased from 12m to 9m during FY17
Money3 delivered $307m cash receipts in FY17, on the back of growth in lending activity, reinforcing the consistently strong and sustainable cash flows of the business.
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Balance Sheet
| | FY17
$m | FY16
$m | FY15
$m |
| --- | --- | --- | --- |
| Cash and Cash Equivalents | 21.1 | 27.2 | 12.4 |
| Loans and Other Receivables (Net) | 225.1 | 164.4 | 130.3 |
| Other Assets | 9.3 | 7.1 | 6.2 |
| Intangible Assets | 19.2 | 19.7 | 19.4 |
| Total Assets | 274.7 | 218.4 | 168.3 |
| Borrowings | 79.5 | 48.6 | 35.2 |
| Other Liabilities | 13.1 | 13.3 | 10.4 |
| Total Liabilities | 92.6 | 61.9 | 45.6 |
| Total Equity | 182.1 | 156.5 | 122.7 |
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Disclaimer
The content of this presentation has been prepared by Money3 Corporation Limited (the Company) for general information purposes only.
Any recommendations given are general and do not take into account your personal circumstances and therefore are not to be taken as a recommendation or advice to you.
You should decide whether to contact your financial adviser so a full and complete analysis can be made in respect to your personal situation.
Whilst all care has been taken compiling this presentation neither the Company nor any of its related parties, employees or directors give any warranty with respect to the information provided or accept any liability to any person who relies on it.
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Money3 Corporation Ltd
Enquiries to:
Ray Malone
Chairman
e. [email protected]
Scott Baldwin
Managing Director
e. [email protected]
Brett Coventry
Chief Financial Officer
e. [email protected]
Head Office
Level 1 / 40 Graduate Road,
Bundoora, 3083
p. 03 9093 8255