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- MoneyMe (MME) is up on the ASX this morning after revealing record loan originations over a profitable first half of the 2021 financial year
- The digital loan specialist today revealed $114 million in originations over the half-year — 21 per cent higher than the same period in 2019
- Moreover, MoneyMe said the run rate for March 2021 quarter originations alone is currently at around $90 million
- MoneyMe posted a $1.3 million profit in the half-year despite COVID-19-induced challenges and important investment into its core technology
- On top of this, the company said it received an unsolicited and confidential takeover proposal from a “very credible and significant third party”
- While MoneyMe ultimately declined the offer, it claims the bid implied an equity value for its business at a “significant premium” to its current share price
- Shares in MME are up just over a per cent this morning to trade at $1.61 per share
MoneyMe (MME) is up on the ASX this morning after revealing record loan originations over a profitable first half of the 2021 financial year.
The digital loan specialist said in its latest half-yearly financial report originations for the six months to the end of December 2020 came in at $114 million —21 per cent higher than the $95 million over the first half of the 2020 financial year.
This was driven by sturdy quarter-on-quarter growth, with December quarter originations up 52 per cent on the quarter before. MoneyMe said this growth is ongoing, with the current run rate for March 2021 quarter originations at $90 million.
Revenue for the half-year grew 12 per cent on the prior corresponding period to $24 million, with further growth expected over the second half the year to reflect MoneyMe’s growing originations.
The company said almost half of all customer originations over the half-year came from returning customers, with 13 per cent coming from the MoneyMe+ buy now, pay later service alongside the ListReady and RentReady products.
Moreover, MoneyMe was able to maintain a half-yearly profit while navigating challenges created by COVID-19 and investing in building up and growing its Horizon tech platform.
MME posted a net profit after tax of $1.3 million over the half-year, which is around 70 per cent below the prior corresponding period’s $4.3 million profit.
Still, considering fintech giants like Afterpay and Zip Co are yet to turn a profit, MoneyMe’s back-to-back profits suggests the company’s tech is less reliant on merchants and customer numbers and driven by meaningful customer relationships.
MoneyMe CEO and Managing Director Clayton Howes said he is “delighted” with the fintech’s growth over the half-year.
“It is exciting to see the new funding warehouse facility delivering significantly lower funding costs and new business origination capacity and our core and more recently launched products resonating to well with Generation Now,” Clayton said.
“The innovation pipeline is continuing at pace as we continue to invest for massive scale and product diversification opportunities,” he said.
And, according to company management, other businesses have noticed the potential of MoneyMe.
Fighting off buyers?
MoneyMe said over the half-year, it received an unsolicited and confidential acquisition proposal from a “very credible and significant third party”.
While MoneyMe did not specify who lobbed the bid, the company said the proposition implies an equity value for MoneyMe at a “significant premium” to its current share price.
It cost MoneyMe around $900,000 to review the proposal, but MME ultimately decided not to sell out to a big company too early.
At the end of December 2020, MoneyMe had roughly $28.6 million in cash and cash equivalents on hand, with $154.3 million in net customer receivables.
Shares in MME are up 1.07 per cent at 11:37 am AEDT to trade at $1.61 per share. The company has a $273 million market cap.
