MNY changes it’s name to Solvar.

…”Solvar, represents what the Group does, which is to provide personalised finance solutions, allowing customers to solve their financial needs”.

The company continues to buy back its own stock with now 3.3m share bought back to date reducing its share count from 213 down to 210m. Having started in June and expected to run for 12 months they have allocated 15m for the buy back. At present prices this will see 7.5-8.0m shares bought back which would represent 3.5-4% of their share count.

I would not be surprised to see them conduct another buy back should they maintain or increase profit margins whilst they trade at <8.0PE.

I hold this iRL as part of my “dividend stocks” any CG I see as a bonus. I hold it along with PPM as my proxy to holding banks. Riskier than a big 4 Bank but, with better DIV returns 7-8%.

As per @jayjayjayjay 's post, this year's result was another cracker.

The following bar charts show the performance over the last 5 years. This is not all organic, there have been acquisitions, but it is important note that EPS have steadily increased over this time. There was a hiccup in most metrics because of the pandemic. This had a couple fp important impacts - it caused a reduction in the steady increase in usual business but markedly reduced delinquencies/non-performing loans due to the Ozzy version of the stimmy.

There has also been a steady improvement on ROE over the last few years, now tracking at 14.6%

As they have grown, they have been albeit access borrowing at lower and lower rates so the margin on each loan increases, this trend should continue over time

Delinquencies will pick up and have provisions for a 5.6% rate have been made for the near-term. They report an improvement in credit risk across their customer base which should mitigate this, but it is unclear how this is measured, and what impact rising rates will have on these metrics (it certainly won't improve them, that's for sure)

The near term goal is for 1billion in loans for 2023 increasing to 3 billion for the "mid-term".

The risks are likely two-fold:

constraining staff related costs required to implement this growth (see below)

risk mitigation of non-performing loans.

I am reasonably confident, given their long track record that they should be able to accomplish this, but they have been sold off in anticipation of deteriorating credit environment. If this turns out to be not as bad as feared then today's valuation will prove to be an excellent buying opportunity

Money3 records another strong set of results.

Highlights:

• 22.1% loan book growth to 733.4 mil
• revenue increase 29.5% to 187.9 mil
• EBITDA 22.4% increase to 99mil
• NPAT to $51.6mil, 31.6% increase
• Earnings per share to 24.4cents up 22.9%
• 30% increase in full-year dividends to 13cents
• over 300mil in available funding to support growth or acquisitions

MNY got sold off recently and it was incredibly cheap some weeks ago. I took full advantage to add more shares IRL. MNY currently has a share buyback coming on which will support the price as a certain level. MNY also has survived the GFC so this is not one of these new age fintech's growing at all costs, they are a steady earner, paying dividends and growing at a solid rate YonY.

outlook:

• consumers demand for the groups products continue to increase, and record results are expected in FY23. Forecasts on >$1 Billion loan book expected and they will announce guidance in November at AGM.

I somewhat see MNY as a bit like a TechnologyOne. Not as good a business but EPS continually grow each year, pay a nice dividend that increases YonY. Like TNE it will never shoot the lights out but SP growth occurs steadily.

DISC - I own IRL and SM

Money3 release another strong set of results

1H highlights

• 34.5% increase in revenue to 91.3 mil
• 29.6% increase in NPAT to $25.8 mil (well on track to meet guidance of 50m, I now expect this to be exceeded especially with NZ and Aust opening up).
• 56.3% increase in new loan originations to $236.2 mil
• 45.7% increase in gross loan book to $690.8 mil (FY22 forecast loan book of $800m on track)
• 6c fully franked dividend paid

MNY report that they are seeing growth in both scale and quality of loans with 60% of all borrowers rated as "strong" (likely to pay back debt), and bad debts continue to trend down to only 3.9% of the loan book and continue to trend this way.

CEO who I highly rate says they have seen strong demand since Christmas and firmly believes they will meet guidance which as mentioned above I would imagine will be exceeded. As I expected the supply chain issues are working favourably for MNY as this is pushing up car prices therefore people taking out larger loans. Having said this because people are cashed up they are also seeing loans being paid off hence "bad debt" trending downward.

This one is a nice set and forget stock. It compounds nicely over time and pays a dividend. MNY will not ever shoot the lights out though.

Disc - I hold IRL and SM

Money3 provided another strong year.

FY21 Results

• EBITDA 80.9mil up 64.8%
• Loan Book 601mil up 38.5%
• NPAT 39.2mil up 76.6%
• Revenue 145.1mil up 17%
• EPS 19.85cents up 64.3%
• ROE 9.9% up 13.4%
• Dividend 7 cents - full year 10 cents

FY22 Targets

• Target 760-810 mil Loan Book with the aim of over 800 or top end guidance
• ROE continues to improve toward target of 15% (this is not necessarily a FY22 target rather just a target to trend it to 15%)

Money 3 has three business units within it.

1. Go Car Finance:
   • Loan book growth of over 30% since acquisition
   • strong new customer and loan growth, up over 90% in FY21 on PCP
   • 50% increase in revenue in FY21 over PCP
   • Expecting strong growth in FY22 
2. AFS??????
   • doubled warehouse facility so should see strong growth
   • saw significant growth in this sector
3. Money 3
   • Strong 2H FY21 up 40% on PCP
   • strong organic growth this year
   • possible acquisition in this area
   • avg loan size increased by 18% to 13k over PCP
   • 40% increase in 2H cash advanced over PCP

A strong year/ Industry Outlook:

• 4 banks funding Money3 group (reduced risk/reliance on one bank)
• Improving vehicle supply
• Large bank contraction favouring non-bank lenders
• Growing demand to buy an asset due to restricted travel

Company Outlook:

·         Continue to take market share

·         Accelerate expansion in digital online consumer channel

·         Leverage technology to improve customer experience

·         Launch commercial lending program

·         Pursue acquisitions.

The reason I like MNY compared to other pay day lenders is they secure the loan to an asset in this case a vehicle. MNY management are superb and have had good numbers now since they took over. They aim to have ROE lift to 15% (currently 9.9%) as they continue to grow the loan book towards 1 billion. The aim is to have 1 billion gross loan receivables by FY24. Once this occurs I would expect the ROE to increase significantly and towards and even past 20% (18-36 months). The business has had tailwinds since the Royal Commission of banks with volume of customers increasing for non-bank lenders. MNY provide a better service in comparison to the banks where loans are settled faster and at more convenience to their customers. They are also developing a mobile app which will further improve this. Further there is growing demand to buy an asset due to travel restrictions currently. The aim of 760-810 mil loan book looks very conservative and management said we will be looking at the top end of that. There is a competitive environment in this field with some exciting fintechs entering, namely MoneyMe (MME) the one that stands out to me the most with their AutoPay product showing strong growth however MNY to me is the leader in the segment. They have a strong balance sheet with improving credit quality and strong relationships with dealers.

Money3 has done very well in the current year;

record profits have arrived, have no fear;

that shareholders will suffer because dividends are up;

to record levels, which is usually partly good luck;

because of economic conditions caused by stimulus;

if those things change then low provisioning may cause the market to fuss.

MONEY3 ACHIEVES RECORD 1H FY21 RESULT WITH FOCUS NOW FULLY ON GROWTH

Financial highlights:

• 32.8% increase in EBITDA to $40.5 million,

• 26.8% increase in NPAT to $19.9 million,

• 8.3% increase in revenue to $67.9 million,

• 9.3% increase in cash advanced to $151.1 million,

• 23.6% increase in cash collection to $165.0 million,

• 11.1% increase of gross loan book to $474.0 million, and

• declared a fully franked 3?cents interim dividend payable on 8 April 2021.

Operational highlights:

• Acquired Automotive Financial Services (“AFS”), broadening the addressable market and adding $46.7m (end of January?2021) to the Group’s gross loan book,

• Acquired GMF Australia Pty Ltd (“GMFA”), a subsidiary of General Motors Financial Corporation Inc, adding $23.3 million to the loan book at settlement,

• Strong start to 2H FY21 with continued outperformance in customer collections because of a market leading Customer Care team that leverages strong proprietary technology,

• Oversubscribed capital raise – providing $52 million of new equity to fund acquisitions and loan book growth, • Credit Quality of book continues to improve which will lead to an ongoing reduction in impairment provisions over time,

• Secured $250 million warehouse facility with Credit Suisse –providing for a $10.0 million interest expense saving when fully deployed,

• Secured $55 million warehouse facility with Westpac.

Disc: Previously was one of my largest holdings...just recently became a small holder 

MONEY3 GROWS CUSTOMER BASE THROUGH GMFA ACQUISITION

Highlights:

- Acquisition increases the Group’s automotive loan book by approximately $23 million

- Adds approximately 700 automotive loans for new vehicles to the Group’s loan book - Complements the Group’s expansion into near prime automotive lending

- $17m acquisition funded from existing cash

MONEY3 TO ACQUIRE GMF AUSTRALIA’S LOAN BOOK AND INCREASES FY21 GUIDANCE

Money3 has gone into a Trading Halt til Mon 7th Dec 2020 when it will announce a capital raising as per my previous post re Aquisition.

Could someone please let me know how to edit a post, Cheers

"Money3 Corporation Limited (ASX: MNY, “Money3” or the “Company”) is pleased to announce it has entered into a binding agreement to acquire Automotive Financial Services Pty Ltd (AFS), a non-bank funder of consumer and commercial vehicles operating in the near-prime automotive segment."

Money3 expects the acquisition is earnings accretive from transaction completion