HMY - Harmoney Corp Limited

[winner69]

https://www.nzx.com/announcements/395544

What does it say Ben

Good news I hope

[thegreatestben]

HMY delivers FY22 Cash NPAT Profitability
19/7/2022, 9:32 am MKTUPDTE
[Please note that this is a text version of a release and so may be missing formatting, tables, images and other graphical elements that are not necessarily indicated here. We strongly suggest reading the PDF version to preserve full comprehension.]

19 July 2022
ASX / NZX RELEASE

HARMONEY DELIVERS FY22 CASH NPAT PROFITABILITY AND EXCEEDS LOAN BOOK GUIDANCE

Harmoney Corp Limited (ASX/NZX: HMY; “Harmoney” or “the Company”) is pleased to provide an update on its performance for the year ended 30 June 2022 (“FY22”).

Key FY22 highlights:
• Achieved profitability in FY22 on proforma Cash NPAT demonstrating superior economics of Harmoney’s 100% consumer-direct business model
• Group proforma loan book reaches $685 million, up 37% on pcp
• Australian loan book grows to A$287 million, up 113% on pcp
• Key lead indicators of increased account acquisition, new loan originations and net lending margin set to drive Cash NPAT growth in FY23 as existing customers return for future needs with minimal customer acquisition cost
• High quality loan book with 90+ days arrears at 45 bps, down from 58bps pcp
• Australian loan book expected to surpass New Zealand loan book in H1FY23
• 94% of loan book now funded by warehouses (guidance of >90%); given this faster transition Harmoney to report only statutory financials from 1 July 2022 onwards

Commenting on a record year, David Stevens, Harmoney’s CEO & Managing Director said:

“Harmoney continues to deliver on its high margin, consumer-direct growth strategy, with its Australian loan book growing by 113%, whilst achieving an enviable Net Interest Margin of 12%, Net Lending Margin (after losses) of 8.4% and delivering proforma Cash NPAT profitability.

“Our platform is currently attracting over 12,000 new customer accounts per month, with over 8,000 per month providing bank statement information. These statements allow Harmoney to gain access to deep customer data about the Australian and New Zealand consumer. Importantly, this is all achieved without any above the line brand advertising through our 100% consumer-direct/B2C channel.

“In response to rising interest rates this year, in April we passed through a weighted average interest rate increase of more than 100bps on new lending, with no reduction in demand. In fact, in June, we delivered our second highest month of originations in what is typically a seasonally quiet month.

“Our credit performance has remained strong with losses and arrears at historic lows. The group loan book comprises a diverse group of borrowers with more than 40% being homeowners and 99% in regular employment or self-employed, and among those at least 74% employed in either professional, office or trades roles.

“With the second half of the year and the likelihood of increasing central bank rates putting upward pressure on funding costs, Harmoney’s hedging program, with around 73% of floating rate borrowings hedged, dampens this impact over the course of the year. Overall funding rates have reduced from the prior year with the near completion of the transition to warehouse funding and continued improvements to our funding facilities.

“As signalled, we are now seeing strong growth (152% on pcp) in our Australian existing customer originations, which typically accelerate from twelve months following the new customer origination. We expect Australia to follow the same trend as we have experienced in New Zealand, where we have been operating for several more years, and where existing customer originations are more than half of all originations. The Australian business is now building the same large annuity stream from existing customers, but in a nine times larger market. Importantly, these originations have a minimal (if any) customer acquisition cost due to our consumer-direct relationship and high customer approval ratings.”

[See table.]

HARMONEY IS CASH NPAT PROFITABLE

Harmoney’s unrivalled automation continues to deliver an attractive net lending margin, with personal risk-based interest rates to prime borrowers, low arrears and credit losses and reducing cost of funds as funding sources are diversified, now being funded by three of the Big 4 banks and an ABS program.

Additionally, a strong credit performance was maintained due to Harmoney’s high-quality loan book, with Group 90+ day arrears at 30 June 2022 of 45bps, down from 58bps pcp.
This net lending margin, in conjunction with the economies of scale from automation, has delivered FY22 Cash NPAT profitability on a proforma basis.

Harmoney also operates with a positive statutory cash flow from operations. Harmoney also holds unrestricted cash at bank of $35m at 30 June 2022, up $3m from 31 December 2021.

LOAN BOOK GROWTH ACCELERATES FURTHER

At 30 June 2022, the group proforma loan book was $685 million, an increase of 37% on pcp. The Australian loan book grew by 113% to A$287 million, an A$152 million increase on pcp. The New Zealand loan book grew by 3%, impacted by the strict COVID-19 lockdowns in the first half of the financial year and subsequent new lending regulations applied to all consumer lenders in December 2021.

[See table.]

FY22 Results Announcement

Harmoney intends to present its full year FY22 results to the market on Wednesday 31 August 2022 at 10am AEST and 12pm NZST.

All numbers in this release are preliminary and are unaudited. This release was authorised by the Board of Harmoney Corp Limited.

[percy]

https://www.nzx.com/announcements/395544

BINGO,full house.....lol.
Love the NIM.[net interest margin]

[Rawz]

What does it say Ben

Good news I hope

It basically says they are getting on with it. Growing the book and the growth is quality with arrears still low. 40% of customers are home owners and 99% in regular employment or self employed.

Pro forma stuff soon to be a distant memory. If I had my time over this is the stage when i should of invested.
But who hasnt had a 50% drawdown on one of their investments to then watch it rebound and become a star.

Being cashflow positive is very important. Onwards and upwards.

[Rawz]

Loan book $685m. Pretty close to my guess of $688,888,888.8888889 lol

[Snow Leopard]

So this 'Proforma Cash NPAT' is the real deal?
Or we made a loss but.... thing?

Disc: Happy holder

[Rawz]

So this 'Proforma Cash NPAT' is the real deal?
Or we made a loss but.... thing?

Disc: Happy holder

There will be a real loss. But market is always forward looking, SP up 7.2% initially

[whatsup]

I thought that last years result was on a growth path but since then the S P has halved, I now think that it really is on a growth path and again I am topping up ( read averaging down ).

[Rawz]

I thought that last years result was on a growth path but since then the S P has halved, I now think that it really is on a growth path and again I am topping up ( read averaging down ).

Yes it has been a strange one. Book has grown 37% Net lending margin grown 52%.
But SP decreased 63%

This year will likely see same growth metrics but the SP number will be a much much different story. Just my opinion

[whatsup]

Yes it has been a strange one. Book has grown 37% Net lending margin grown 52%.
But SP decreased 63%

This year will likely see same growth metrics but the SP number will be a much much different story. Just my opinion

So which fish head has been a net seller since they listed at $3-70 18 months ago a 77ish% decrease !!?