Findi Limited's FY25 Earnings Guidance and Strategic Market Update
FND (FND) Share Update July 2024 Wednesday 31st
Findi Limited Provides FY25 Earnings Guidance and Strategic Market Update
Findi Limited (ASX: FND) has released its FY25 earnings guidance, highlighting significant revenue growth, strategic investments, and key leadership changes aimed at driving future expansion.
Instant Summary:
- FY25 revenue guidance: A$80-90 million.
- FY25 EBITDA guidance: A$30-35 million.
- Expansion of FindiPay across six new States, acquiring 3,000+ merchants per month.
- Advanced due diligence on acquisitions.
- Nicholas Smedley appointed Executive Chairman.
- IPO of TSI India on track for 2026.
FY25 Earnings Guidance
Findi Limited has announced its FY25 revenue guidance, projecting a range of A$80-90 million, up from A$66.5 million in FY24. The company also expects FY25 EBITDA to be between A$30-35 million, compared to A$27.4 million in FY24. This growth is attributed to strategic investments in expanding FindiPay, enhancing systems, and strengthening the leadership team.
The company has not provided guidance on NPAT for FY25, citing the difficulty in predicting the impact of ongoing investments and acquisitions on net profits.
Strategic Initiatives
Findi plans to roll out FindiPay across six new States, adding to its existing presence in six States and Territories in India. The company is acquiring over 3,000 merchants per month, significantly expanding its merchant network.
Findi is also advancing due diligence on acquisitions to further expand its ATM network and enhance its payments and digital banking offerings. The IPO of its subsidiary, TSI India, on the Bombay Stock Exchange is on track for 2026, with lead brokers to be appointed shortly.
Leadership Changes
Nicholas Smedley has been appointed as Executive Chairman for a three-year term, effective 1 April 2024. His focus will be on guiding the leadership team and overseeing the company's acquisition pipeline and the IPO of TSI India. The company plans to make several C-suite hires to support its growth initiatives.
White Label ATM Licence
Findi expects to leverage its White Label ATM licence to deploy ATMs, capture market data, and provide basic financial services to India's underbanked population. The systems audit report for the White Label licence is expected to be lodged in August 2024, with the initial deployment of Findi-branded ATMs to commence in the second half of the financial year.
The announcement of strong revenue and EBITDA guidance for FY25 is likely to positively impact Findi's stock price. The expansion of FindiPay and strategic acquisitions indicate robust growth prospects. However, the lack of NPAT guidance may create some uncertainty among investors.
Investor Reaction:
Analysts are expected to react positively to the revenue and EBITDA guidance, as well as the strategic initiatives outlined by the company. The appointment of Nicholas Smedley as Executive Chairman is seen as a strong move to drive the company's growth and acquisition strategy.
Conclusion:
Investors should closely monitor Findi's progress in rolling out FindiPay, completing acquisitions, and preparing for the IPO of TSI India. The company's strategic investments and leadership changes position it well for future growth. Stay informed and consider the potential long-term benefits of these initiatives.