At the time of writing, the financial services company’s shares are exchanging hands for $2.89, up 0.7%.
Quick take on Money3
Founded in 2000, the Victorian-based business specialises in non-bank automotive finance throughout Australia and New Zealand. This includes flexible secured and unsecured personal loans for a period of up to 5 years. Money3’s brands include Cash Train and Personal Finance Co.
Money3 upgrades guidance
Investors are warming to Money3’s encouraging release.
In a statement to the ASX, Money3 advised that due to improved trading conditions, it expects its net profit after tax (NPAT) to increase. This is based on the company’s strong new loan originations which recorded a compound annual growth rate (CAGR) of 30.2%. In addition, favourable economic conditions along with anticipated cash collections during Q4 FY21 is driving the profit expectation.
Accordingly, Money3 upgraded its profit guidance for FY21 to $38 million. This represents a jump from the $36 million that was previously indicated in its February half-year results.
Comments from the CEO
Money3 CEO, Scott Baldwin touched on the company’s progress, commenting:
We continue to experience strong organic new loan originations through the second half of the financial year and expect this trend to continue into FY22.
While the forecasted result is uplifting, used vehicle pricing is predicted to stabilise. The company estimates to carry a large number of pre-approved loans in FY22, due to delays in new asset delivery.
How has the Money3 share price performed?
Over the last 12 months, Money3 shares have moved higher to post a gain of more than 80% for investors. The company’s share price reached an all-time high of $3.38 in late April, before heading lower from profit-taking.
Based on today’s price, Money3 presides a market capitalisation of roughly $580 million, with 208 million shares outstanding.