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FlexiGroup (ASX:FXL) - CEO, Rebecca James - The Market Herald
CEO, Rebecca James
Source: The Australian
  • Over the 2020 financial year, FlexiGroup (FXL) processed $2.5 billion in transaction volumes across its product offering — a 16 per cent increase from FY19
  • FlexiGroup is a fintech company that offers buy now, pay later services, credit cards and other financing products for small to medium enterprises
  • The company expects cash net profit after tax (NPAT) to be $60 million, however, this includes a macro overlay provision of $31 million post-tax due to COVID-19
  • This means cash NPAT is expected to total $29 million for FY20
  • FlexiGroup gave customers hardship assistance during COVID-19, which has led to increased loyalty and the commencement of repayments
  • Company shares are down 4.89 per cent and trading for $1.27

Over the 2020 financial year, FlexiGroup (FXL) processed $2.5 billion in transaction volumes across its product offering — a 16 per cent increase from FY19.

Based on unaudited accounts, the company expects to report cash net profit after tax (NPAT) of $29 million for FY20. This includes a macro overlay provision of $31 million post-tax which related to the economic impact of COVID-19.

Therefore, cash NPAT before this provision is expected to be $60 million.

"The increased macro overlay provision is a necessary and prudent step as we continue to manage the continued economic uncertainty as a result of COVID-19," CEO Rebecca James said.

"What’s particularly reassuring is that despite the significant economic headwinds experienced this year for both the business and our customers, we’ve continued to manage the portfolio in a prudent way," Rebecca added.

FlexiGroup is a finance technology company and claims to be "Australasia's original fintech." The company has an ecosystem of buy now, pay later, credit cards, and business financing products.

These offerings have proven to be a significant strength in a challenging economic environment.

Since early March, the fintech company adjusted its portfolio to accommodate for the potential increase in unemployment. It also actively supported its customers who requested hardship assistance and were impacted by COVID-19. FlexiGroup says this has been well-received and cemented loyalty with customers who are now ready to commence repayments or enter payment plans.

Accordingly, new requests for hardship assistance are now similar to pre-COVID-19 levels.

Additionally, FlexiGroup's actions have helped deliver unaudited net losses and average net receivables performance of just 4.1 per cent in FY20 compared to 4.2 per cent in FY19.

At the end of FY20, FlexiGroup had committed wholesale funding facility headroom of $603 million, $145 million of undrawn corporate debt and unrestricted cash representing net gearing of 29 per cent.

Over the last 12 months, FlexiGroup has become one of the largest, interest-free instalment providers in Australia and New Zealand, with over 2.1 million customers and 56,000 merchants.

Company shares are down 4.89 per cent and trading for $1.27 each at 11:19 am AEST.


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