Why the Harmoney (ASX:HMY) share price is up 8% today

The consumer credit company has announced record quarterly results.

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Harmoney share price rise represented by two staffers high fiving in the office

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The Harmoney Corp Ltd (ASX: HMY) share price is rocketing in early trade, up 7.94% to $1.84 per share.

Below we take a look at the consumer credit company’s results for the quarter ending 30 September (Q1 FY22) that look to be driving ASX investor interest.

What results did Harmoney report for Q1 FY22?

The Harmoney share price is soaring after the company reported the biggest quarterly lift in new customer originations in its history.

Australian new customer originations of $31 million increased 885% year-on-year and were up 17% on the previous quarter.

The company’s proforma loan book climbed to $517 million. The book yielded a net interest margin of 11% and a net lending margin of 7%.

Its Australian receivables book also showed strong growth, up 58% on the prior quarter to $155 million.

Commenting on the results, Harmoney’s CEO, David Stevens said:

Harmoney continues to deliver on its growth strategy with another outstanding quarter despite COVID lockdowns in Australia and New Zealand…

Harmoney’s Group loan book, at just over half a billion dollars, is already cash NPAT breakeven on a proforma basis. The company’s 100% consumer-direct model and innovative Libra lending platform enables over two thirds of loan applications to be completely automated, providing significant operational leverage and driving profitability as our income grows noticeably faster than our cost base.

Expounding on the company’s technology-focused offerings, Stevens added, “Harmoney’s consumer-direct marketing technology is world class and generates approximately 10,000 new customer accounts per month across Australia and New Zealand.”

Looking ahead

The Harmoney share price may also be getting a boost after the company reaffirmed its market guidance for the full 2022 financial year.

The guidance includes:

  • Group proforma loan book of at least $600 million
  • Group proforma revenue of at least $92 million
  • A net lending margin of at least 7%

Harmoney share price snapshot

Harmoney is a relative newcomer to the ASX. The company’s initial public offering (IPO) was on 19 November 2020.

So far in 2021, the Harmoney share price has struggled, down 36.5%. That compares to a gain of 9.76% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, the Harmoney share price has dropped by 2.39%.

Should you invest $1,000 in Harmoney right now?

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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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