Harmoney Continues to Deliver Cash NPAT Profitability, Book Growth and Efficiency Improvements
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Harmoney Corp Limited reported a Cash NPAT profitability of $0.5 million for the first half of the fiscal year 2024.
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The company experienced an 8% growth in its loan book, reaching $756 million.
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Revenue increased by 21% compared to the previous corresponding period, totaling $60 million.
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Customer acquisition costs as a percentage of income decreased to 9% from 13%.
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The cost to income ratio improved to 24% from 29%.
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Harmoney launched Stellare 2.0, enhancing efficiency and customer experience in Australia.
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The company refinanced and upsized its corporate debt, with a current limit of $30 million and $7.5 million undrawn.
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Warehouse capacity was extended, with approximately $250 million undrawn, and a $200 million ABS program was established in New Zealand.
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Harmoney targets a 20% Cash Return on Equity run rate by FY25.
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The company has reported positive Cash NPAT for the fourth consecutive half-year.
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Harmoney’s loan portfolio remains high quality, with 74% of customers employed in professional, office, or trades roles, and 87% aged over 30.
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The company has significant growth capacity, supported by three of the “Big Four” Australian banks, with unused warehouse capacity of ~$250 million, corporate debt capacity of $7.5 million, and unrestricted cash of $20.6 million.
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The Net Interest Margin (NIM) was reported at 9.2%, within the company’s target range.
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Harmoney’s business model and Stellare® platform underpin its efficiency, risk selection, and financial performance.
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The company continues to focus on loan book growth, maintaining a net interest margin of 9%, and achieving a 20% Cash ROE run rate by FY25
This announcement is a summary of the company approved ASX announcement on 23/2/2024.
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