EarlyPay Ltd (ASX: EPY) shares are on the rise today after the company provided a business growth and facilities update. At the time of writing, the EarlyPay share price is trading 1.15% higher at 44 cents after earlier posting gains of 5%.
The company provides tailored financing solutions to both small and large businesses across Australia. Let's take a look at what it reported.
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What did EarlyPay report?
EarlyPay shares are moving higher today after the company reported the increase in its new business volumes were continuing during the first two months of the new financial quarter (Q3 FY21). EarlyPay had earlier reported the increase in new business volumes in its half-year financial report (H1 FY21) for the year ending 31 December. That release saw the share price surge 10% on the day.
The company reported that the third quarter tends to be a quieter business period due to holiday disruptions, but this was not the case this year. It reported being on track to increase the number of its Invoice Financing clients by 10% during Q3.
Additionally, Total Transaction Volume increased 10% year on year, which was before COVID-19 impacted the market.
The company credits its online strategy for the growth, reporting more than 90% of all new invoice financing clients used its online platform during Q3 so far, compared to 56% in Q2.
EarlyPay also provided an update on the facility it holds with Greensill, which is now under administration. It said this debt represents "less than 10% of Earlypay's total loan portfolio and will be transitioned to an existing bank warehouse facility which has ample headroom".
The company reaffirmed its full 2021 financial year guidance of earnings before interest, taxes, depreciation and amortisation (EBITDA) of $21 million and net profit after tax and amortisation (NPATA) of $8.5 million. It intends to pay a full-year dividend in the range of 1.3 cents per share, fully franked.
EarlyPay share price snapshot
Over the past full year, EarlyPay shares are down by 12%. That compares to a gain of 32% on the All Ordinaries Index (ASX: XAO).
Year to date, the EarlyPay share price is up 16%.
