Slovar Limited — Earnings Release 2024

Aug 19, 2024

SOLVAR

ASX Release

FY24 Annual Results

20 August 2024

Solvar Limited (ASX: "SVR", "Solvar" or the "Group") a leading provider of automotive finance, is pleased to announce its financial performance for the year ended 30 June 2024 (FY24).

Solvar will host a webinar this morning at 11am AEST with Managing Director & CEO, Scott Baldwin and CFO, Siva Subramani to discuss the full year results. Registration is available by using the following link.

Summary:

• 5.0 cents fully franked final dividend payable on 11 October 2024;
• 11.2% increase in gross Australian loan book to $791.1 million on pcp;
• 2.2% increase in gross Group loan book to $930.3 million on pcp;
• 10.6% increase in Australian revenue to $173.7 million on pcp;
• 3.2% increase in total revenue to $216.0 million on pcp;
• Normalised net profit after tax of $29.0* million;
• On-market share buy-back of up to $15.0 million on-going; 2.9 million shares repurchased at 30 June 2024, at an average price of $1.05 per share;
• Strong balance sheet with $152.9 million cash and net tangible assets of $1.58 per share.

*After adjusting for impairment of goodwill and other intangible assets and legal and professional fees associated with the regulatory related legal actions.

Mr Scott Baldwin, Managing Director & CEO of Solvar, said: "The past year has seen the Group continue to build on our foundations to enable ongoing strong future growth with particular focus on delivering operational efficiencies and robust cyber resilience. In addition, we sought and implemented new funding for the Group's primary warehouse, which lays the foundation for further loan book growth."

"The Solvar Group delivered normalised net profit after tax of $29.0 million against a challenging macroeconomic backdrop which is a testament to the experience and strength of the Group."

Solvar Limited

ABN 63 117 296 143

Australian Credit Licence 389 782

Level 1, 40 Graduate Road,

Bundoora, VIC 3083

+61 3 9093 8255

info@solvar.com.au

solvar.com.au

money3

money3.com.au

AUTOMOTIVE FINANCIAL SERVICES

afs.com.au

Go Car Finance

Goes way further

gocar.co.nz

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SOLVAR

Business Outlook

The Group announced on 23 July 2024 the outcome of a strategic update that included a continued focus to grow consumer lending in Australia. In addition, the Group announced it would launch a dedicated commercial lending business, leveraging off the Groups' skills and experience in financing. Solvar will cease new lending in New Zealand from August 2024 and redeploy the returned capital to our expanding Australian business and reduce outstanding debt in New Zealand.

There are no material developments regarding the ongoing legal actions with the Australian Securities and Investments Commission and the Commerce Commission of New Zealand. An update will be provided on regulatory matters when a material change in the state of affairs occurs.

In FY25, the Group will continue growing the Australian business, as well as manage the collection on the NZ loan book. The Group anticipates the loan book will close the period between $930-$970 million. Solvar expects to provide additional guidance to shareholders at the AGM in November 2024.

Approved for release by the Board of Directors of Solvar Limited.

• ENDS -

For further information please contact:

Managing Director & CEO
Scott Baldwin
+61 3 7031 6035
s.baldwin@solvar.com.au

Chief Financial Officer
Siva Subramani
+61 3 7031 6018
s.subramani@solvar.com.au

Investor Relations
Tom Ng
+61 3 7031 6075
t.ng@solvar.com.au

ABOUT SOLVAR LIMITED (ASX: SVR)

Solvar is a market leading Consumer and Commercial finance company with over 20 years' experience in Australia and New Zealand, having funded over $2 billion of vehicles and personal loans. Dominating the used-vehicle finance market and delivering a unique customer experience from loan application to the final loan payment the group leverages technology to provide a seamless application process from a broker, online or directly to the Group.

Solvar Limited
ABN 63 117 296 143
Australian Credit Licence 389 782
Level 1, 40 Graduate Road,
Bundoora, VIC 3083
+61 3 9093 8255
info@solvar.com.au
solvar.com.au
money3
money3.com.au
AUTOMOTIVE FINANCIAL SERVICES
afs.com.au
Go Car Finance
Goes way further
gocar.co.nz