The Money3 Corp Ltd (ASX: MNY) share price is on the rise today, up 4% in morning trade. Shares are gaining today following the release of Money3’s results for the first half of the 2021 financial year (H1 FY21). At the time of writing, the Money3 share price is trading at $2.94, up 2.5%.
What results did Money3 report for H1 FY21?
In this morning’s release, the financial services company reported it had achieved record results for the half-year and is turning its focus to growth.
Earnings before income, tax, depreciation, and amortisation (EBITDA) came in at $40.5 million. That’s up 32.8% from H1 FY20.
Net profit after tax (NPAT) also posted strong growth, up 26.8% to $19.9 million.
Money3’s revenue for the half-year grew by 8.3% to $67.9 million while its $151.1 million cash holdings increased by 9.3% over the previous corresponding period.
The company reported an 11.1% upturn in its gross loan book, reaching $474.0 million. And Money3 declared a 3 cent interim dividend, fully franked. The dividend will be paid on 8 April.
Statement from the Managing Director
Commenting on the results, Scott Baldwin, Money3’s Managing Director said:
We acquired AFS and GMFA, both settling early in 2021. AFS broadens the Australian product offering for the Group, increasing the leverage of the Group’s existing distribution channels, and expanding the addressable market into new vehicles and growing our presence in the commercial vehicle market. While GMFA provides us with a loan book of high credit quality customers.
Finally, securing the $250 million warehouse from Credit Suisse provides a cornerstone to the Group’s future growth, as does the Westpac funded $55 million warehouse facility supporting the AFS business. We are now very well placed with substantial bank funding at a lower cost of funding… The Group is now focused on growing the business toward $1 billion of receivables.
Looking ahead Money3 reported it is “cautiously optimistic” on its outlook for the second half of the 2021 financial year. It forecast NPAT of $36.0 million. The company expects to pay 9 cents in dividends for the full financial year, fully franked.
Share price snapshot
Money3’s shares hit a record high of $3.03 per share on 21 February last year. The share price then plunged 73% by 23 March. But it’s come back strongly since then. Shares are now up 268% from the 23 March lows and less than 2% below their all-time highs.
Year-to-date the Money 3 share price is up 4.2%. By comparison, the All Ordinaries Index (ASX: XAO) is up 3.3%.
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More reading
- Here’s why the Money3 (ASX:MNY) share price is racing higher
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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