Moneyme (ASX:MME) share price sinks despite record result

A record result hasn’t stopped the company’s shares from slipping on Monday.

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The Moneyme Ltd (ASX: MME) share price is sinking on Monday despite a record full-year result from the Aussie fintech.

Moneyme share price fallss despite record result

Moneyme released its results for the full year ended 30 June 2021 (FY21) this morning. Some of the key takeaways from the update include:

  • Record originations up 115% on the prior corresponding period (pcp) to $384 million
  • Record customer receivables up 149% on pcp to $333 million
  • Record revenue up 21% on pcp to $58 million
  • Cash net profit after tax (NPAT) up 16% on pcp to $12 million

The strong headline growth figures weren’t enough to stop the Moneyme share price sinking lower. Shares in the Aussie consumer credit business are down more than 4% on Monday afternoon to $2.04.

What happened for Moneyme in FY21?

Today’s record result was underpinned by strong product growth and improved financing structure for the Aussie lender. Moneyme established a new major bank warehouse facility to lower funding costs by 55% on FY20 while lowering charge-offs by 25% on pcp to 5%.

The Aussie credit business launched MoneyMe+ and Autopay — two new products focused on point of sale (POS) credit and auto financing respectively.

Moneyme increased loan values for higher credit customers and further diversified its receivables base in FY21. Higher cost efficiencies and improved loan book quality also boosted the company during the year.

What did management say?

Moneyme Managing Director and CEO Clayton Howes said:

We had an outstanding year. The growth execution in the business has been extraordinary and the team delivered — a bigger business, a suite of breakthrough products opening new categories, exceptional customer experiences, big new funding structures and market beating results.

We more than doubled our customer receivables and delivered 3x the future contracted cash interest that sets FY22 up for another successful year.

What’s next for Moneyme and its share price?

Moneyme reported future contracted cash interest of $50 million for FY22, above FY20 recognised income of $48 million.

Despite bumper headline growth figures, the Moneyme share price has slid lower today. However, shares in the Aussie lender are up 39.5% year to date despite this morning’s slip, with a $346 million market capitalisation.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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