Moneyme (ASX:MME) share price sinks despite record result

A record result hasn't stopped the company's shares from slipping on Monday.

| More on:
A man stands in front of a chart with an arrow going down and slaps his forehead in frustration.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Moneyme Ltd (ASX: MME) share price is sinking on Monday despite a record full-year result from the Aussie fintech.

Moneyme share price fallss despite record result

Moneyme released its results for the full year ended 30 June 2021 (FY21) this morning. Some of the key takeaways from the update include:

  • Record originations up 115% on the prior corresponding period (pcp) to $384 million
  • Record customer receivables up 149% on pcp to $333 million
  • Record revenue up 21% on pcp to $58 million
  • Cash net profit after tax (NPAT) up 16% on pcp to $12 million

The strong headline growth figures weren't enough to stop the Moneyme share price sinking lower. Shares in the Aussie consumer credit business are down more than 4% on Monday afternoon to $2.04.

What happened for Moneyme in FY21?

Today's record result was underpinned by strong product growth and improved financing structure for the Aussie lender. Moneyme established a new major bank warehouse facility to lower funding costs by 55% on FY20 while lowering charge-offs by 25% on pcp to 5%.

The Aussie credit business launched MoneyMe+ and Autopay — two new products focused on point of sale (POS) credit and auto financing respectively.

Moneyme increased loan values for higher credit customers and further diversified its receivables base in FY21. Higher cost efficiencies and improved loan book quality also boosted the company during the year.

What did management say?

Moneyme Managing Director and CEO Clayton Howes said:

We had an outstanding year. The growth execution in the business has been extraordinary and the team delivered — a bigger business, a suite of breakthrough products opening new categories, exceptional customer experiences, big new funding structures and market beating results.

We more than doubled our customer receivables and delivered 3x the future contracted cash interest that sets FY22 up for another successful year.

What's next for Moneyme and its share price?

Moneyme reported future contracted cash interest of $50 million for FY22, above FY20 recognised income of $48 million.

Despite bumper headline growth figures, the Moneyme share price has slid lower today. However, shares in the Aussie lender are up 39.5% year to date despite this morning's slip, with a $346 million market capitalisation.

Motley Fool contributor Ken Hall 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 Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Accent, Sayona Mining, Web Travel, and Weebit Nano shares are dropping today

These shares are having a tough time on Thursday. Why are they being sold off?

Read more »

A smartly-dressed man screams to the sky in a trendy office.
Share Fallers

Why Appen, DroneShield, PWR, and Webjet shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »

a car driver sits up and looks alert with wide eyes and an expression of concentration while he holds the wheel of a car.
Share Fallers

Why this ASX All Ordinaries stock just crashed 24%!

Investors are punishing the ASX All Ords company today. Let’s find out why.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Elders, KMD, Lovisa, and Telix shares are dropping today

These shares are missing out on the good times on Tuesday. But why?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Life360, Lovisa, NAB, and Resolute shares are falling today

These shares are starting the week in the red. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Healius, Opthea, Peninsula Energy, and Wildcat shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Graincorp, Light & Wonder, Orica, and Wildcat shares are falling today

These shares are having a tough time on Thursday. But why?

Read more »