Wisr Limited Financial Results and Growth Plans for FY25
WISR LIMITED (WZR) Share Update August 2024 Tuesday 27th
Wisr Limited Announces Financial Results and Growth Plans for FY25
Wisr Limited (ASX: WZR) has announced its financial results for the year ended 30 June 2024, highlighting a strengthened balance sheet and a return to growth. The company is well-positioned to accelerate loan origination growth in FY25 and beyond.
Instant Summary:
- Strengthened balance sheet with a $50M corporate facility from Nomura.
- 30% increase in Q4 FY24 loan originations to $67.5M.
- Operating revenue increased by 2% to $93.8M.
- Operating expenses decreased by 19% to $26.5M.
- EBITDA of ($2.3M), an improvement from ($0.5M) in FY23.
- Total new loan originations of $210M.
- Loan book of $770M with a strong average credit score of 782.
Financial Performance
Wisr Limited reported a 2% increase in operating revenue to $93.8M for the year ended 30 June 2024, compared to $91.9M in FY23. This growth was achieved despite a moderated loan origination volume for the majority of FY24. Operating expenses decreased significantly by 19% to $26.5M, leading to a reduction in the cost-to-income ratio to 28%, down from 36% in FY23.
The company's EBITDA improved to ($2.3M) from ($0.5M) in FY23, reflecting better financial management and cost control. The portfolio yield increased to 10.90%, up from 10.17% in FY23, while the front book yield for June 2024 was 12.62%.
Loan Book and Customer Experience
Wisr's total new loan originations for FY24 were $210M, down from $495M in FY23 due to a deliberate moderation of loan origination volume. The loan book stood at $770M, with a strong average credit score of 782. The 90+ day arrears rate increased to 1.58% from 1.25% in June 2023, driven by a decrease in and maturing of the loan book.
Wisr facilitated the payment of $2.7M in round-ups on customer debt in FY24, with a total of $9.0M all-time. Additionally, $26.4M in extra loan repayments were made by customers. The company's customer Net Promoter Score reached an all-time high of +78.
Balance Sheet and Funding
In May 2024, Wisr strengthened its balance sheet with a $50M corporate facility from Nomura. The company saw a 31% increase in unrestricted cash to $28.4M, up from $21.7M in June 2023. Two warehouses are in place to support originations with a total commitment value of $650M and an undrawn capacity of $220M.
FY25 Objectives
Wisr aims to grow loan originations by 75% in FY25 compared to FY24. The company will focus on maintaining high credit quality and disciplined cost control while driving growth in the loan portfolio. Wisr also plans to strengthen and grow its existing distribution channels, enhance customer engagement through the Wisr App, and continue its pathway to profitability without the need for additional equity capital.
The announcement of Wisr's strengthened balance sheet and return to growth is likely to have a positive impact on the company's stock. The increased loan originations and improved financial performance indicate a strong potential for future growth. Investors may view the company's strategic focus on profitability and disciplined cost control favorably.
Investor Reaction:
Analysts are likely to react positively to Wisr's announcement, given the company's improved financial performance and clear growth strategy for FY25. The strengthened balance sheet and increased loan origination volumes are expected to boost investor confidence.
Conclusion:
Investors should keep an eye on Wisr's progress in achieving its FY25 objectives and its ability to maintain high credit quality and disciplined cost control. The company's strategic focus on growth and profitability positions it well for future success. Subscribe to our newsletter for regular updates on Wisr Limited and other stock market news.