It is a financial services company specialising in providing finance and other related services to assist consumers with the purchase of a new or used vehicle, as well as offering personal loans to consumers.

12 months ago Solvar shares were trading for roughly $1.38. 

Yesterday, this ASX financials stock closed at $1.86. 

That's a rise of 34%.

For context, the S&P/ASX 200 Index (ASX: XJO) is up roughly 7.9% in that same span. 

On Wednesday, the company released H1 FY26 results.

Let's see what the company reported. 

Earnings growth 

In Wednesday's announcement, for the half year ended 31 December 2025 (H1 FY26), the company reported: 

• Normalised Net Profit After Tax (NPAT) of $20.0 million, up 5.8% on pcp;
• Statutory NPAT of $17.8 million, up 5.8% on pcp;
• Earnings Per Share (EPS) up 13.5% to 9.3 cents per share on pcp;
• Fully franked interim dividend of 6.0 cents, plus a special fully franked dividend of 2.5 cents per share, totalling 8.5 cents per share payable on 7 April 2026.

Solvar also reiterated FY26 guidance of normalised NPAT of $36.0 million (including the one-off sale of the written off loan book in New Zealand).

Speaking on the outlook, Mr Scott Baldwin, CEO and Managing Director of Solvar said:

Solvar continues to invest in the development of new products and establishing a dedicated commercial lending team, with the commercial loan book now at ~$67.0 million and growing. Solvar anticipates continued growth in commercial lending as Bennji establishes itself in the market.

Investors were clearly pleased with the results as its share price is up 5.6% since the announcement. 

Morgans gives it an upgrade

Following the result, the team at Morgans increased its target price on this ASX financials stock. 

The broker said the company's 1H26 result continued to illustrate the ongoing shift in the business as management work through the windup of New Zealand and refocus attention back towards domestic growth. 

Normalised NPAT was ahead of estimates, while net interest income was behind. 

FY26 Normalised NPAT guidance of ~$36m (i.e. NPAT of $34m plus ~$2m from one-off sale of NZ Arrears) was reiterated (implying 2H NPAT of $16m), with SVR expecting book growth momentum to improve into 2H26 lead by Bennji & AFS. Our FY26-28F Underlying NPAT forecasts lift by +5%/+1%/+1%.

Following this forecast upgrade, the broker increased the price target to $2.00 (previously $1.85). 

Morgans maintained its Accumulate rating. 

Based on yesterday's closing price of $1.86, the new price target indicates an upside of 7.53%

The post Morgans just bumped up its price target for this booming ASX financials stock appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

ASX Ltd (ASX: ASX)

The ASX share price is up over 3.5% to $59.63. This is likely to have been driven by the release of a broker note out of Macquarie Group Ltd (ASX: MQG) this morning. According to the note, the broker has upgraded the stock exchange operator's shares to an outperform rating with a $64.00 price target. It made the move following equities and futures momentum, as well as an attractive earnings multiple. The broker said: "Upgrade to Outperform (from Neutral). With momentum around equities and futures volumes, at current multiples we see valuations as attractive."

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is up 4.5% to $13.74. This is despite there being no news out of the rare earths producer on Friday. However, prior to today's session, the company's shares were down by almost a third in the space of just one month. Some investors may believe that this has created a buying opportunity and have been snapping them up today.

News Corp (ASX: NWS)

The News Corp share price is up 4.5% to $46.98. Investors have been buying this media giant's shares following the release of another solid quarterly update. News Corp reported a 2% increase in revenue to US$2.14 billion and a 5% lift in total segment EBITDA to US$340 million. Commenting on the quarter, News Corp's chief executive, Robert Thomson, said: "Following a sterling performance in fiscal 2025 – one that marked a record year for profitability on a continuing operations basis – News Corp continued to increase both revenue and profitability in the first quarter of fiscal 2026, led by strength at Dow Jones and Digital Real Estate Services, and bolstered by digital and AI-related revenues."

Solvar Ltd (ASX: SVR)

The Solvar share price is up 2% to $1.57. This morning, this specialist finance company announced enhancements to debt facilities of its Money3 business unit. It notes that the new arrangements provide greater diversification of funding sources and deliver a material reduction in its cost of funds. The company's CEO, Scott Baldwin, said: "The establishment of a new warehouse facility and the restructuring of the existing warehouse, together providing over $350.0 million of headroom, represents a major step forward in broadening and diversifying Money3's funders."

The post Why ASX, Lynas, News Corp, and Solvar shares are storming higher today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is down a further 15% to 23 cents. Investors have been selling off this copper miner's shares this week following a very disappointing update. Aeris revealed that it is putting its Jaguar operation on care and maintenance due to forecast operating losses in FY 2024. The company has also taken out a $50 million working capital facility from major shareholder Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) with very high interest rates.

Janus Henderson Group (ASX: JHG)

The Janus Henderson share price is down 4% to $42. This follows the release of the fund manager's quarterly update. Janus Henderson reported second-quarter operating income of US$117.9 million. This is down from US$143.9 million in the second quarter of FY 2022.

Lindian Resources Ltd (ASX: LIN)

The Lindian share price is down 13% to 36.5 cents. Investors have been selling this rare earths explorer's shares despite it releasing an impressive mineral resource estimate (MRE). Management notes that its MRE places its Kangankunde operation as one the world's largest rare earths deposits and positions it as a globally strategic resource for secure, long-term supply. This weakness could be a case of buy the rumour, sell the news.

Solvar Ltd (ASX: SVR)

The Solvar share price is down 33% to $1.16. This follows the release of a trading update from the automotive lending company. Solvar revealed that it expects to report a 7.8% decline in net profit after tax to $47.6 million for FY 2023. However, things will be much worse in FY 2024, with management guiding to a potential 50% decline in profits. It advised that "FY24 NPAT will be impacted by the full year cost of central banks rate rise cycle."

The post Why Aeris, Janus Henderson, Lindian, and Solvar shares are sinking today appeared first on The Motley Fool Australia.

In morning trade, the ASX 300 share is down a very disappointing 40% to $1.04.

Why is this ASX 300 share crashing?

Investors have been selling this automotive-focused loans company's shares following the release of a trading update.

For the 12 months ended 30 June, the company formerly known as Money3 expects to report:

• Revenue up 11.4% to $209.3 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 11.9% to $110.8 million
• Net profit after tax down 7.8% to $47.6 million
• Fully franked final dividend of 9 cents per share

The ASX 300 share's CEO and managing director, Scott Baldwin, said:

I am pleased to report that, subject to audit, our FY23 results are in line with guidance. The Australian operations continue to perform well, with pleasing loan book growth of 31%. A total dividend for FY23 of 16.5 cents per share, fully franked, would equate to a payout ratio of 86% of the second half earnings.

So why the selling?

Investors have been selling down this ASX 300 share due to its FY 2024 guidance rather than its results.

Unfortunately, management is expecting rising interest rates and the tough macroeconomic environment to weigh on its loan book growth and profits over the next 12 months.

In respect to the latter, the company is expecting its FY 2024 net profit after tax to be in the range of $24 million to $30 million. This will be a 37% to 50% decline year on year. Management explained:

FY24 NPAT will be impacted by the full year cost of central banks rate rise cycle. Increases in funding costs are being passed through on new loans written, however it reduces the profit contribution from the back book.

The post Why did this ASX 300 share just crash 40%? appeared first on The Motley Fool Australia.

But not all All Ords shares are joining the pity party today. In fact, some are going gangbusters. So let's talk about three that are giving their investors some joy right now.

3 All Ords shares bucking the market with big gains today

Solvar Ltd (ASX: SVR)

All Ords financial services company and loans provider Solvar is first up today. This All Ords share is shooting the moon this session, currently up a whopping 13.3% at $2.04 a share. Earlier today, Solvar shares were even higher, reaching a top of $2.10, which put the company up a massive 16.67% at the time.

It appears investors are flooding into this company following an announcement from Solvar this morning. It revealed that Solvar is raising its maximum dividend payout ratio from 70% to 90% of net profit after tax (NPAT). Right now, Solvar has a trailing dividend yield of more than 7%, so it's not surprising to see investors reacting positively to this news.

Telix Pharmaceuticals Ltd (ASX: TLX)

Next, let's have a look at All Ords healthcare share Telix Pharmaceuticals. Telix shares are also having a cracking day, currently up by a pleasing 11.98% at $8.835 apiece. Earlier in the session, Telix shares hit $8.91 each, a boost of 12.93%.

The catalyst for these moves seems to be a series of ASX announcements Telix made this morning, including a quarterly cash flow report.

This report revealed that Telix turned over $100.1 million in revenue over the three months to 31 March 2023, the first time it has reported more than $100 million in revenue for a quarter.

Telix's Illuccix product was a particular highlight, with US sales of $97.5 million booked for the quarter, up from $76.8 million in the previous quarter. So perhaps it's no wonder this has put investors in a good mood.

Weebit Nano Ltd (ASX: WBT)

Finally today, let's discuss All Ords tech share Weebit Nano. Despite a rough month for the company, Weebit shares have risen by a solid 5.61% at the time of writing up to $5.27 a share. That's down from an intraday high of $5.48, a significant 9.81% jump at the time.

Uniquely on this list, Weebit shares have had no ASX announcements or official developments of any kind out today. Or indeed so far in April. But Weebit is a company where moves like this are not exactly uncommon.

But even so, Weebit remains more than 40% down from its March all-time high of $9.03 a share. So perhaps investors have had a sudden change of heart and decided that the shares are looking cheap right now. Or maybe a major investor has bought a large parcel of shares. Whatever the reason, it's certainly a noteworthy move.

The post 3 ASX All Ords shares going gangbusters on Tuesday appeared first on The Motley Fool Australia.

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.

The post Money3 share price rockets after 'record breaking' results appeared first on The Motley Fool Australia.

At the time of writing, the automotive finance specialist's shares are up 7.62% to $2.40 apiece.

Money3 shares to turn the tide?

According to its release, Money3 advised it will undertake a buyback of up to $15 million of its ordinary shares.

This will occur over the next 12 months through a series of on-market transactions as part of the company's capital management strategy.

While Money3 will undoubtedly reduce its surplus capital, shareholder value will increase.

To break it down, when Money3 buys back its shares, the number of shares on its registry will decrease. With a lesser amount, this effectively increases the value of each share as the revenue and profits remain the same.

Traditionally, when this occurs, a company's share price tends to rise over time.

Money3 noted the decision to buy back shares reflects the strong confidence of the group along with future growth prospects.

Money3 managing director, Scott Baldwin commented:

The company has over 20 years' experience lending and collecting throughout all credit cycles. In addition, 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.

Money3 share price snapshot

It's been a disappointing 12 months for Money3 shares, falling 22% in value.

The company's share price has drifted even further during the course of 2022, down 32%.

Money3 commands a market capitalisation of about $513.03 million and has approximately 213.76 million shares on its registry.

The post This ASX All Ordinaries share just leapt 7% on a $15 million share buyback appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising today:

CSL Limited (ASX: CSL)

The CSL share price is up 2.5% to $277.48. Investors have been buying this biotherapeutics giant's shares for a couple of reasons. One is optimism that the company will be able to overturn the US government's ban on Mexican citizens crossing the border to donate plasma. The other is the release of a couple of bullish broker notes.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is up 1.5% to $12.49. This follows the release of the technology hardware and software distributor's first-quarter trading update. For the three months ended 31 March, Dicker Data reported a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million. This was driven by a combination of organic growth and the acquisition of Exeed.

Lifestyle Communities Limited (ASX: LIC)

The Lifestyle Communities share price is up 11% to $13.47. Investors have been buying this land lease communities company's shares following some insider buying and a bullish broker note out of Goldman Sachs. In respect to the latter, Goldman has reiterated its conviction buy rating and $24.65 price target. That price target implied 100% upside prior to today's gain.

Money3 Corporation Limited (ASX: MNY)

The Money3 share price is up 7.5% to $2.40. This morning the auto lender announced that it will be returning funds to shareholders via an on-market share buyback. Money3 intends to buy back up to $15 million worth of shares over the next 12 months. Management advised that this reflects the strong confidence of the Board and Management in the company's financial performance and future growth prospects.

The post Why CSL, Dicker Data, Lifestyle Communities, and Money3 shares are rising today appeared first on The Motley Fool Australia.

ASX small caps have followed suit and are only lagging by a small amount, also up by almost 6% during the last month of trade.

The S&P/ASX Small Ordinaries Index (ASX: XSO) spiked 2% in the past week, not enough to erase a 6% loss that investors have penalised the segment with so far in 2022.

Interestingly, with all the talk of inflation, investors can look to the smaller end of town in search of some juicy dividends at more than respectable yields. Take a look.

Small cap dividends? Please tell me more

ASX small caps have often lent investors an uncorrelated return to add into their portfolios. So hearing that some of these names also pay dividends is music to our ears.

One interesting name is Beacon Lighting Ltd (ASX: BLX). Two experts are also constructive on the stock and rate it as a buy right now. Beacon paid a fully franked 4.3 cents per share dividend in March.

Both Martin Hickson of 1851 Capital and portfolio manager at Hayborough Investment Partners, Ben Rundle, agree that Beacon is worth its weight at present.

"We think Beacon's a buy. We're going through a renovation boom at the moment that's supportive of their earnings," Hickson said during an episode of Buy Hold Sell on Livewire. Rundle agreed.

"We also think the market is underestimating the growth in their trade and international businesses. So, Beacon's a buy," he added.

Hickson also advocates to buy Capitol Health Ltd (ASX: CAJ), noting the new CEO's turnaround and a respectable valuation.

"They've [Capitol] got $100 million in firepower to deploy into acquisitions, trades on an EV/EBITDA multiple of 8x, versus private transactions being done at 12x. So, we think it's a buy," he remarked.

Meanwhile, Rundle is supportive of Money3 Corporation Ltd (ASX: MNY). He likes the company's recent earnings strength, plus its growth vision appears more visible from recent funding.

"I think it's a buy," he noted, agreeing with Hickson, who said the same thing about Money3.

"As he [Hickson] pointed out, they upgraded earnings the other day and they probably will upgrade again. They've just got more funding as well, which can support their growth plans. So, I think it's a buy," Rundle concluded.

Money3 has paid a 13 cents per share cumulative dividend since 8 April 2021.

The returns for each of these names is charted below. In that time, Beacon lighting has surged over 29%, beating the other recommendations.

The post 3 small-cap ASX shares that pay big dividends? Please tell me more appeared first on The Motley Fool Australia.

Among the 30+ shares that the broker named were the two listed below. Here's why it thinks they could have a great year:

Cooper Energy Ltd (ASX: COE)

In the energy sector, Bell Potter has named Cooper Energy as an ASX share to buy in 2022. The broker has put a buy rating and 38 cents price target on its shares. This compares favourably to the current Cooper Energy share price of 28 cents.

Bell Potter believes the company is well-placed to benefit from supply deficits in Australia's south east coast market.

It commented: "Supply deficits in Australia's south east coast market should support gas prices over the medium to long term and COE has a portfolio of conventional gas assets leveraged to this theme. Upgrades at the Orbost Gas Processing Plant in the March 2022 quarter will provide a step-change in production and earnings in FY23."

"In the Otways, cutover to the larger, low cost Athena gas plant in late 2021 will provide uninterruptable gas processing and spare capacity for potential new Otway Basin discoveries. An upgrade to prospective Otway gas resource estimates is expected in the March 2022 quarter," it concluded.

Money3 Corporation Limited (ASX: MNY)

In the Industrials sector, the broker has picked out this automotive-focused consumer finance provider. It has put a buy rating and $4.35 price target on its shares, which compares to the latest Money3 share price of $3.45.

Bell Potter believes the company is well-positioned to hit its guidance in FY 2022 and for further solid growth in the coming years.

It explained: "MNY is a beneficiary of favourable macro conditions for loan book growth, evidenced by strong originations in Nov'21 which are likely to accelerate into CY22 as VIC/NSW and NZ emerge from lockdowns. With ample funding headroom to support its strong outlook and greater book leverage, we believe MNY is well placed for its FY22 NPAT Guidance of $50m."

"Having built a solid platform for growth, and improved ROE over the medium term, we believe MNY is well placed to deliver double digit forecast EPS growth over the next 3 years, and we see value in the business at its current PER of ~14x FY22e & ~11x FY23e, with a FY22e dividend yield of ~3.6% ff (~5.2% grossed up)," the broker added.

The post Top analysts say these ASX shares have upside potential of at least 25% appeared first on The Motley Fool Australia.

This means that investors who own the respective shares at market close on Tuesday will be eligible to receive the company's dividend.

10 ASX shares trading ex-dividend

Brambles Limited (ASX: BXB)

The Brambles share price is approaching 5-year highs after a solid FY21 full-year results announcement.

At the time of writing, Brambles shares are down 2.48% to $12.18 after going ex-dividend for a final dividend of 10.5 US cents.

Medibank Private Ltd (ASX: MPL)

Medibank shares have been trending strongly since April, up 26.7% to 12-month highs.

The private health insurer's share price performance has been underpinned by a strong FY21 results announcement highlighting a 39.8% jump in net profit after tax to $441 million.

At the time of writing, the Medibank share price is down 2.49% to $3.53 after going ex-dividend for a fully franked final dividend of 6.9 cents per share.

Blackmores Limited (ASX: BKL)

The Blackmores share price was one of the best performing ASX shares on today's ex-dividends list after surging 35% last month.

The company's recovery story has started to gather momentum, with FY21 results highlighting a 51.7% jump in underlying net profit after tax to $25.4 million.

Blackmores shares are trading 2.05% at $92.26 after going ex-dividend for a fully franked dividend of 42 cents.

Adairs Ltd (ASX: ADH)

The Adairs dividend more than doubled this year to a total payout of 23 cents (FY20: 11 cents).

This is all thanks to a record FY21 financial performance where statutory net profit after tax (NPAT) surged 80.7% to $63.7 million.

The Adairs share price is down 3.56% to $3.925 today after going ex-dividend for a final dividend of 10 cents per share.

Shaver Shop Group Ltd (ASX: SSG)

The Shaver Shop Group share price has been trading sideways since October 2020, likely impacted by the cycling of elevated sales and recent COVID-19 lockdowns.

Despite the tailwinds, the business managed to deliver a significant uplift in FY21 earnings, posting a 68.3% surge in net profit to $17.5 million.

The company's shares are down 3.77% to $1.02 after going ex-dividend for a final dividend of 5 cents per share.

Accent Group Ltd (ASX: AX1)

The Accent share price follows the same narrative as Shaver Shop – trading sideways since late last year.

This is despite a 38.6% increase in FY21 profits to $76.9 million and a 21.6% increase in full-year dividends to 11.25 cents.

Accent shares are down 3.17% to $2.14 on Wednesday after going ex-dividend for a fully franked final dividend of 3.25 cents per share.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is the worst performing ASX share in today's ex-dividend list, plunging 54% in the past 12 months due to lower production at its key Leonora and Simberi projects.

The company reported an overall drop in revenue and profit in FY21 but still squeezed out a dividend for its shareholders.

St Barbara is going ex-dividend today for a final dividend of 2 cents per share.

SEEK Limited (ASX: SEK)

The SEEK share price is within arms reach of all-time highs, currently down 0.56% to $33.76.

SEEK shares are falling less on Wednesday relative to other ex-dividend shares because the company is paying out a much smaller dividend relative to its share price.

SEEK is trading ex-dividend today for a dividend of 20 cents per share.

Money3 Corporation Limited (ASX: MNY)

The Money3 share price is one of few ASX shares falling less than the dividend the company is paying out.

Money3's shares are down 4.5 cents or 1.28% to $3.475 despite going ex-dividend for a fully franked final dividend of 7 cents per share.

Austal Limited (ASX: ASB)

The Austal share price has fallen off a cliff, down 33.6% year to date and sliding 45% in the past 12 months.

The shipbuilding business has struggled on multiple fronts, with a firmer Australian dollar weighing on earnings in addition to COVID-related border closures, travel restrictions and supply-chain challenges.

Austal shares are down 3.77% to $1.785 on Wednesday after going ex-dividend for 4 cents per share.

The post Dividends galore! 10 ASX shares trading ex-dividend on Wednesday appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are charging higher:

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is up 5% to $4.91 following the release of its full year results. For the 12 months ended 30 June, the property listings company reported a 66% increase in net profit to $37.9 million. The company also revealed that its unique digital audience increased to a record of more than 9 million during the year.

Money3 Corporation Limited (ASX: MNY)

The Money3 share price has risen over 2.5% to $3.48. This morning the consumer and commercial finance company released a strong full year result. It revealed a 38.5% increase in its loan book to $601 million and a 76.6% jump in net profit after tax to $39.2 million. This allowed Money3 to increase its full year dividend to 10 cents per share. Management is positive on FY 2022 and expects growth beyond 20% in FY 2022. Strong demand for finance for used cars is underpinning its growth.

ResMed Inc. (ASX: RMD)

The ResMed share price is up 2.5% to $38.28. This follows the announcement of the launch of the sleep treatment company's new AirSense 11 device. It is a next-generation positive airway pressure (PAP) device designed to help hundreds of millions of people worldwide with sleep apnoea start and stay on therapy to treat and manage obstructive sleep apnoea. The device comes with new features such as Personal Therapy Assistant and Care Check-In.

Steadfast Group Ltd (ASX: SDF)

The Steadfast share price has risen 3.5% to $4.85. Investors have been buying the insurance broker's shares following the release of its full year results and the announcement of a major acquisition. In respect to the latter, the company is acquiring Australian privately owned insurance broker Coverforce for an enterprise value of $411.5 million.

The post Why Domain, Money3, ResMed, & Steadfast shares are charging higher appeared first on The Motley Fool Australia.

Money3 share price lifts to record highs after jump in earnings

Money3 delivered double-digit increases across all key operating metrics, signalling a great year for the consumer and commercial finance company. Highlights include:

• Loan book of $601 million, up 38.5% on FY20
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $80.9 million, up 64.8%
• Earnings per share of 19.85 cents, up 64.3%
• Net profit after tax (NPAT) of $39.2 million, up 76.6%
• Fully franked final dividend of 7 cents per share, or a full year dividend of 10 cents per share

A stellar year for Money3

The Money3 share price is rallying to record highs thanks to a record-breaking FY21. The company cited accelerating growth in the second half with an expansion of its loan receivables book to over $600 million at year end.

The company was pleased to highlight that it had "significantly broadened its product mix and target market". It has three business units operating across personal lending, automotive consumer and commercial lending in the Australian and New Zealand market.

This expansion in product offering was driven by the company's two acquisitions in FY21.

In January, Money3 completed its acquisition of Automotive Financial Services (AFS), which has since experienced a 400% increase in new loan originations in the first six months of operation in the Group.

In the same month, the company acquired GMF Australia, a subsidiary of General Motors Financial Company Inc. The acquisition announcement advised that the move will increase the Group's automotive loan book by approximately $23 million.

Alongside strong organic growth and growth through acquisitions, the company was proud to highlight its "diversified funding base, underpinned by multiple major banks, to facilitate continued growth of all business units".

Management commentary

Money3's Managing Director and CEO Scott Baldwin hailed the results, saying:

We are experiencing exceptional lending momentum which has led to over $600.0 million of receivables at the end of FY21. High consumer demand for financing the purchase of new or used vehicles and leisure products like caravans is expected to continue through FY22.

Multiple funding sources and solid funding capacity puts the Group in a very strong position to continue to deliver strong growth in FY22.

The Group continues its investment in technology to make our customer interaction increasingly easy and convenient. Customers will be able to use mobile devices to apply for a loan, manage their payments, book a
service, post questions to the company and interact with the Group in a seamless way

Momentum to carry through to FY22

Money3 said that "demand for the Group's products is at record levels across all three business units, with the Group extremely well-positioned for growth exceeding 20%, which is in line with analysts' consensus".

The Money3 share price is up a solid 20% year-to-date and rallied more than 76% in the last 12 months.

The post Money3 (ASX:MNY) share price hits its high after bumper FY21 results appeared first on The Motley Fool Australia.

One trend, first seen last year during the first wave of the pandemic, is the increased usage of private cars.

Understandably, Australians are more averse to riding public transport when a deadly virus is spreading.

According to multiple experts, there is one particular ASX stock that is set to take advantage of this theme.

Expert reveals he owns this ASX share himself

Online loan provider Money3 Corporation Limited (ASX: MNY) specialises in financing for second-hand car purchases.

Shaw and Partners senior investment advisor Adam Dawes revealed he has the stock stashed in his own superannuation portfolio.

"It's a really good business; it's a really good technology business. I'm really comfortable with it," he told Switzer TV Investing.

"I like recommending it to clients."

Dawes liked that Money3 revised its financial forecast upwards a couple of months ago.

"They were looking for a net profit of about $36 million. They upgraded that to $38 million," he said.

"They've had a couple of acquisitions that they're bedding down at the moment which seem to be working on the right space."

Money3 will rake it in while cars are going like hotcakes

Burman Invest chief investment officer Julia Lee agreed with Dawes that Money3 was heading in a positive direction.

"The outlook for cars is extremely strong," she said.

"If you want to try to buy a new car there's a long wait — and if you're trying to buy a used car, the price has gone up substantially than what you would've paid 2 years ago."

Lee added that Money3 has "a good team" running the ship.

Dawes also saw the consumer shift to private vehicles as a major tailwind.

"We know that the second-hand vehicle market has gone absolutely ridiculous because it takes 6 months to get a new car delivered," he said.

"And people need cars straight away sometimes — and that's why that second-hand car market has done so [well]."

Money3 started off as a bricks-and-mortar business and listed on the ASX in 2006. 

Its shares have risen almost 80% over the past 12 months, going for $3.10 on Tuesday afternoon. Money3 now has a market capitalisation of just under $650 million.

The post The ASX tech share to rocket during lockdown appeared first on The Motley Fool Australia.

While Australia's traditional banks made a strong comeback during the COVID recovery year, the 5 best fintech ASX shares trading on the All Ordinaries Index (ASX: XAO) all saw their shares gain significantly more.

As our benchmark, the All Ords (which contains the 500 largest shares on the ASX) gained 25% during FY21, which ran from 1 July 2020 through to 30 June 2021.

Now let's see how these nimble financial players stacked up.

Best ASX fintech share: HUB24 Ltd (ASX: HUB)

The best ASX fintech share to hold during FY21 was HUB24, with shares gaining 198% over the year.

The company uses its technology driven wealth management solutions to connect advisers and their clients. And it seems to be doing so efficiently. In March this year, HUB24 reported its funds under management (FUM) had increased 237% year-on-year to $51.4 billion.

HUB24 closed the financial year trading at $28.51 per share. It has a market cap of $1.8 billion and pays a slender dividend yield of 0.31%, fully franked.

Praemium Ltd (ASX: PPS)

Taking out the number 2 spot in our best ASX fintech list is Praemium, which gained 184% over the 12 months.

The company offers portfolio administration, investment platforms, and financial planning tools for the wealth management industry. And like our number one performer, Praemium also saw its funds under management grow strongly during the year, up 96% year-on-year when it provided its March update.

Praemium closed on 30 June at $1.08 per share. With just under 502 million shares outstanding, it has a market cap of $479 million.

Sezzle Inc (ASX: SZL)

Coming in at number 3 is Sezzle. Sezzle shares gained 128% during FY21.

The buy now, pay later (BNPL) share is a relative newcomer to the ASX. It listed in August 2019 and closed its first trading day at $2.39 per share.

In a sign of the growing trend of making a number of interest free payments on purchases, it's currently at $8.87 per share after hitting all-time highs of $11.34 on 28 August, 2020.

Sezzle finished FY21 trading at $8.81 per share.

Money3 Corp Ltd (ASX: MNY)

Moving down to number 4, we find Money3, with a highly respectable 116% share price gain over the financial year.

The company focuses on providing non-bank finance via secured automotive loans as well as secured and unsecured personal loans. In May, Money3 cited improved trading conditions to upgrade its profit guidance for FY21 from $36 million to $38 million.

Money3 closed at $3.38 per share on 30 June. It pays a 1.92% fully franked dividend yield and has a market cap of $657 million.

Afterpay Ltd (ASX: APT)

Demonstrating the continued strength of top performing buy now, pay later companies, the fifth best ASX fintech share is Afterpay. Afterpay's share price gained 95% in FY21.

The BNPL heavyweight first began trading on the ASX in June 2017. And investors who bought shares back on day 1 would currently be sitting on paper gains of 3,912%.

Afterpay closed FY21 at $188.17 per share. With roughly 291 million shares outstanding, it has a market cap of $34.4 billion.

The post Here are the 5 best ASX fintech shares of the 2021 financial year appeared first on The Motley Fool Australia.

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.

The post Money3 (ASX:MNY) share price on the rise after positive update appeared first on The Motley Fool Australia.

At the time of writing, the financial services company's shares are fetching for $3.22, up 1.26% — an all-time high.

New facility to support growth

Investors are pushing Money3 shares into positive territory following the company's sights to fund growth in the New Zealand market.

According to the release, Money3 advised its subsidiary, Go Car Finance has secured a NZ$40 million facility with Heartland Bank.

Founded in 2011, Heartland Bank is a New Zealand-owned bank, and a subsidiary of ASX-listed Heartland Group Holdings Ltd (ASX: HGH).

In addition, Money3 stated that the 3-year facility is an addition to the existing facility with the Bank of New Zealand. The new line of credit, however, will replace the current mezzanine finance facility. It's also estimated that the cost of funding will be improved by more than 3% for the switch over.

Notably, Money3 has now secured facilities from four different banks. Two in Australia and also two in New Zealand. Furthermore, the group highlighted that it's strategic intent was to diversify its funding strategy to ensure adequate funding capacity.

Moving into FY22, Money3 will seek to grow its loan book to more than $800 million since securing funding partners.

Management commentary

Money3 CEO, Scott Baldwin touched on the company's progress, saying:

Over the past 24 months the Go Car team have executed perfectly on our growth strategy. Growing introduction partnerships across New Zealand and growing a quality loan book allowing us to introduce Heartland Bank to the Group.

The new facility along with the existing debt with the Bank of New Zealand will allow the group to further grow our loan book.

Heartland Bank CEO, Chris Flood added:

Heartland Bank is pleased to support Go Car Finance with funding for its New Zealand loan book. The funding aligns with Heartland Bank's strategy to diversify business lending and is consistent with our long history of providing motor vehicle finance in New Zealand.

Money3 share price summary

In the past year, the Money3 share price has been ascending on an upwards trajectory, gaining over 120%. The company's shares hit a record high today on the back of positive investor sentiment.

Based on the current share price, Money3 has a market capitalisation of roughly $671 million, with 207 million shares outstanding.

The post Why the Money3 (ASX:MNY) share price just hit an all-time high appeared first on The Motley Fool Australia.

What results did Money3 report for H1 FY21?

In this morning's release, the financial services company reported it had achieved record results for the half-year and is turning its focus to growth.

Earnings before income, tax, depreciation, and amortisation (EBITDA) came in at $40.5 million. That's up 32.8% from H1 FY20.

Net profit after tax (NPAT) also posted strong growth, up 26.8% to $19.9 million.

Money3's revenue for the half-year grew by 8.3% to $67.9 million while its $151.1 million cash holdings increased by 9.3% over the previous corresponding period.

The company reported an 11.1% upturn in its gross loan book, reaching $474.0 million. And Money3 declared a 3 cent interim dividend, fully franked. The dividend will be paid on 8 April.

Statement from the Managing Director

Commenting on the results, Scott Baldwin, Money3's Managing Director said:

We acquired AFS and GMFA, both settling early in 2021. AFS broadens the Australian product offering for the Group, increasing the leverage of the Group's existing distribution channels, and expanding the addressable market into new vehicles and growing our presence in the commercial vehicle market. While GMFA provides us with a loan book of high credit quality customers.

Finally, securing the $250 million warehouse from Credit Suisse provides a cornerstone to the Group's future growth, as does the Westpac funded $55 million warehouse facility supporting the AFS business. We are now very well placed with substantial bank funding at a lower cost of funding… The Group is now focused on growing the business toward $1 billion of receivables.

Looking ahead Money3 reported it is "cautiously optimistic" on its outlook for the second half of the 2021 financial year. It forecast NPAT of $36.0 million. The company expects to pay 9 cents in dividends for the full financial year, fully franked.

Share price snapshot

Money3's shares hit a record high of $3.03 per share on 21 February last year. The share price then plunged 73% by 23 March. But it's come back strongly since then. Shares are now up 268% from the 23 March lows and less than 2% below their all-time highs.

Year-to-date the Money 3 share price is up 4.2%. By comparison, the All Ordinaries Index (ASX: XAO) is up 3.3%.

The post Here's why the Money3 (ASX:MNY) share price is on the rise today appeared first on The Motley Fool Australia.

At the time of writing, the vehicle-focused consumer finance provider's shares are up 4$ to $2.85.

Why is the Money3 share price racing higher?

Investors have been buying the company's shares this morning after it announced a new acquisition and an update to its guidance for FY 2021.

According to the release, the company has entered into an agreement to acquire GMF Australia for $17 million. This will be funded from the company's cash reserves.

GMF Australia is a subsidiary of General Motors Financial Company and consists of a portfolio of approximately 700 automotive loans for new vehicles.

The transaction is expected to settle in February 2021 and increases the company's automotive loan book by approximately $23 million.

The release explains that GMF Australia will be absorbed by the company's Customer Care operation with a minimal increase in ongoing operational expenses.

Money3's Managing Director, Scott Baldwin, commented: "Money3 continues to leverage its strengths in collections with the acquisition of approximately 700 customers of prime credit quality that purchased a new vehicle through a Holden dealership. It demonstrates the group's ability to acquire customers either organically or through portfolio acquisitions."

"There are no staff or complicated transition processes needed for this acquisition as all outstanding commitments will roll into the existing Customer Care team deploying capital immediately with customer repayment patterns aligning nicely with the cash requirements of the business in 2021," he added.

FY 2021 guidance.

Pleasingly, the company's strong form continued through to the end of the first half. Combined with recent acquisitions, the company expects its full year result to be stronger than previously forecast.

As a result, management has upgraded its full year guidance for net profit after tax to $36 million. This compares to its previous profit after tax guidance of $34 million and will be a year on year increase of 12.2%.

The post Here's why the Money3 (ASX:MNY) share price is racing higher appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 3.5% to $6.84 despite there being no news out of the auto parts retailer. This latest decline means the Bapcor share price is now down a disappointing 16% since this time last month. Investors appear concerned that the COVID tailwinds it was experiencing may now ease given the prospect of vaccines being released in the near future. These tailwinds include an increase in domestic tourism and increased vehicle usage during the pandemic to avoid public transport.

Event Hospitality and Entertainment Ltd (ASX: EVT)

The Event share price has fallen 4% to $10.48 after providing an update on the sale of its Cinestar business. That update revealed that Vue International is seeking to renegotiate the terms of the acquisition of the Cinestar business. Vue also advised that it has stopped the divestment process of some of its sites. These divestments are required by regulators to complete the Cinestar purchase.

Money3 Corporation Limited (ASX: MNY)

The Money3 share price is down 2.5% to $2.89 after completing a capital raising. The consumer finance provider raised $45 million at an 8.8% discount of $2.70. It will now push ahead with a share purchase plan to raise a further $7 million. The proceeds will be used to fund the acquisition of Automotive Financial Services and loan book growth in Australia and New Zealand.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 4.5% to $3.34. This is despite the release of a positive weekly trading update this morning. According to the release, the payments company processed $366 million of payments during the first four days of December. This represents a 16% increase on the prior corresponding period. During November, payment volumes were up 13% to $2.159 billion.

The post Why Bapcor, Event, Money3, & Tyro shares are dropping lower appeared first on The Motley Fool Australia.