Money3 share price rockets after 'record breaking' results

The loan provider also increased its dividend to celebrate its buoyant numbers across all key metrics.

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Key points

  • Money3 released its results for the financial year 2022
  • The company claims "record breaking" results, while forecasting another "record" year in 2023
  • The dividend is also up on last year

Car and personal loan provider Money3 Corporation Limited (ASX: MNY) saw its share price rocket 8% in early trade on Tuesday.

The movement followed the release of its full-year financials before market open.

The company's shares are currently fetching $2.47 each, a 7.86% gain. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.91% at the time of writing.

What did the company report?

  • Revenue up 29.5% to $187.9 million
  • Net profit after tax (NPAT) up 31.6% to $51.6 million
  • Loan book up 22.1% from $600.9 million to $733.4 million
  • Dividend up 30% to 13 cents for the year

What else happened in FY22?

Money3 started giving $15 million back to shareholders in May through an on-market stock buyback.

"The company has over 20 years' experience lending and collecting throughout all credit cycles," Money3 managing director Scott Baldwin said at the time.

"Given our strong financial health, together with a low level of leverage, and the lowest cost of capital the group has ever had, we believe implementing a buyback is the most appropriate capital management strategy at this time."

What did management say?

Baldwin said Tuesday upon revealing the full-year results:

The momentum of new lending across the group is strong, with current monthly origination volumes enabling the group to target its loan book reaching $1.0 billion in 2023, with the management team now focused on initiatives to achieve its mid-term aspiration of a $3.0 billion loan book, underpinned by commercial and personal loans growth over the coming years.

What's next?

Other than indicating that all business units would produce "record results" again for the 2023 financial year, Money3 declined to give future guidance. 

The board has promised its outlook at the annual general meeting in November.

Money3 share price snapshot

The financial services provider is one of those rare small-cap ASX shares that provides a chunky dividend income.

The dividend yield currently stands at 5.4%.

However, like most small caps, the Money3 share price has taken a hammering in 2022. It has dropped nearly 32% year-to-date.

Motley Fool contributor Tony Yoo 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 Scott Phillips.

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