Fintech lender Plenti Group [ASX:PLT] is enjoying a brief reprieve today. The stock is up 2.47% at time of writing, clawing its way back from strong downward momentum in recent months.
As for whether the bounce will last, only time will tell. After all, the fintech sector is under a lot of pressure right now.
Inflation and rising interest rates have put the industry on notice. It seems almost everyone is anticipating a bad outcome.
But, as Plenti’s full-year account shows today, this pessimism may be misplaced…
Breaking records, whilst breaking new lows
With Plenti’s financial year ending on 31 March, the company has showcased its complete result for FY22. For shareholders, there are a lot of positives to take away from the figures too.
As management showcases, loan originations reached a record $1.1 billion. That’s a 134% increase over FY21’s results.
In total, that brought Plenti’s loan book to a sum of $1.3 billion. That’s another record result, with an 111% jump on last year’s figure.
On top of that, interest revenue rose by 72% year-on-year to $87.3 million. And best of all, Plenti was able to deliver a positive net profit of $0.5 million for the first time ever.
This kind of growth, across all Plenti’s major metrics, should please investors. Because even if the broader headwinds begin to take a toll, management has put the business in a solid spot to endure.
Who knows, they may even find more niches to thrive compared to the traditional banks…
As Plenti’s CEO Daniel Foggo mentions:
‘Achieving positive cash NPAT is a major milestone for Plenti and a testament to the strength of our technology-led business model and talented team. It rounds out what has been an exceptional year of growth as we continue to capture market share in all lending verticals and set new industry standards.
‘Underpinning this is a relentless focus on delivering exceptional experiences and growth initiatives. With our diverse funding options, continually improving operational efficiencies as we scale, and strong risk management track record, we are well placed to continue delivering profitable growth.’
What’s next for Plenti?
All-in-all, it’s hard to look at Plenti’s position and not wonder if they’re being oversold.
Obviously, no one knows how impactful this fixation on inflation and rising rates will be, but it’s certainly being priced into speculative fintech stocks like Plenti. So, if it doesn’t turn out to be as destructive as many think, don’t be surprised if we see these kinds of stocks rallying higher in the second half of 2022.
I’d suggest it’s worth keeping an eye on them in the coming weeks and months.
And I’m not the only at Money Morning doing so…
Our small-cap editor, Callum Newman, has been hunting down the best ‘Grave-Dancer’ picks he can find. That is, stocks that have been so oversold that they’re now bargain buys.
So, if you’re looking for the best value that Aussie small caps have to offer, find out more about Callum’s three picks right here.
Regards,
Ryan Clarkson-Ledward,
For Money Morning
