Axsesstoday reports net profit after tax of $3.2million for the period to 31 December 2017. This represents a $1.5m or 95% increase from the prior corresponding period. Based on this result the Company will be paying a fully franked dividend for the first half of FY18 of 2.9 cents per share to be paid on 22 March 2018.
The Company announced an increase to its previous FY18 guidance following continued strong growth in the loan book to $256m as at 31 December 2017, an increase of 53% from 30 June 2017 and 190% from 31 December 2016. Based on the current growth rate and the annuity income from the current receivables portfolio, the Company expects net profit after tax for FY18 to be $7.0m, a 96% increase over the FY17 result. The guidance maintains the Company’s position regarding credit loss provisions and provides ongoing investment in people and systems to support the Company’s continued growth into the future.
Portfolio credit performance has remained stable over the first 6 months of FY18, with arrears (unimpaired past due 30 days receivables) at 1.6% of gross receivables as at 31 December 2017, which increased from 1.4% as at 30 September 2017. Total credit losses to 31 December 2017 are within target range. During the first quarter of FY18, the Company refined its estimation techniques used to determine which assets should be written off and which should be subject to provision.
The Hospitality business continued its strong momentum for the 6 month period to 31 December 2017, with growth in loan receivables of 83% over the previous corresponding period to $88.3 million. The Company has continued to deepen market penetration in its core channels of restaurants, cafes and franchises. The outlook for the Hospitality sector remains strong and the Company expects it to continue to provide significant annuity income for the foreseeable future as industry relationships are strengthened and broadened.
The Transport sector exceeded expectations for the period to 31 December 2017, with growth in loan receivables of 365% over the previous corresponding period to $123.9 million. The growth has been attributed to increased accreditations with the largest and most reputable introducers in the market. The Company expects this robust performance to continue into the second half of the financial year based on the strong finance origination pipeline
Axsesstoday provides short term business loans to qualifying customers. The product was launched in January 2017 and is complimentary to existing product offerings with risk adjusted returns in line with the Company’s objective. As at 31 December 2017, the principal balance on the loan book was $13.6 million, a 119% increase over 30 June 2017.
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