Financial solutions and lending platform Plenti Group [ASX:PLT] provided its full-year results for the end of FY23. The fintech also reported a new record for its loan portfolio.
PLT shares were trading for around 44 cents at the time of writing — the fintech’s stock rocketing to more than 14% after the announcement.
Although it has risen by 7% in the last month, PLT slipped 40.5% in share value in the year and is considerably lower against its industry and the general market performance:
Source: TradingView
Cash profit rises and growth remains profitable for Plenti
Plenti reported a jump in revenue — a significant 62% increase to $143 million for the full year — thanks to strong growth in its loan portfolio.
Plenti also reported a cash net profit after tax of $4.5 million — up $4 million on the prior year.
Furthermore, there was a new record for the group’s loan portfolio of $1.8 billion — up by 36% on the prior year — and another record was posted for loan originations of $1.1 billion — also up by 3% on the prior year.
Plenti said it had materially reduced its cost-to-income ratio, which was evidence of operational leverage within its technology-led business model.
With two recent asset-backed securities (ABS) transactions also under its belt, the group now has ABS issuance of over $1.3 billion, establishing the company as a ‘programmatic issuer with domestic and international investor support.’
Plenti has now launched Green Connect — an innovative platform that brings together renewable energy product manufacturers, energy retailers, and equipment installers for its finance offerings.
Retail investor platform enhancements have also been finalised, simplifying the group’s investment markets and introducing a new investment market to expose its ABS notes to gain more traction.
With significant increases in funding costs early in the year, the company decided to prioritise increasing customer yields (to restore net interest margins earned on new loans) rather than maximising loan origination volumes.
This decision was supported by the company’s capital position as well as its reflection on its profitability pathway.
Plenti is chasing market leadership positions in each of its lending segments to extend its product and technology advantages and optimise its funding.
The group expects loan origination growth to increase as FY24 progresses — supporting continued growth in its loan portfolio and allowing inclusions for further economies of scale — and anticipates a robust full-year cash NPAT growth for FY24.
CEO Daniel Foggo said:
‘Growing cash NPAT to $4.5 million in a year when funding costs increased materially is testament to the strength of our technology-led business model and our talented team.
‘We leveraged our product diversity and capabilities across customer reach, funding and credit, to deliver another differentiated performance.
‘We enter our new financial year confident of our ability to continue building market share in each of our loan verticals, and our ability to translate these market share gains into robust profit growth.’
Source: PLT
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For Money Morning