Accord Financial (ACD) Q4 2024 earnings summary

Executive summary

• Strategic focus shifted to core businesses after the Q3 sale of the AEF lease financing portfolio; the year ended with a streamlined business and more conservative balance sheet.

• Annual net loss narrowed to $3.1 million from $14.6 million in 2023, but credit losses continued to weigh on earnings.

Financial highlights

• FY 2024 revenue rose to $83.1 million from $79.7 million in 2023, despite lower average funds employed; higher average yields and the AEF asset-sale gain contributed.

• Q4 revenue was $21.220 million versus $23.898 million YoY; net loss attributable to shareholders was $1.848 million versus $7.575 million.

• FY net loss attributable to shareholders was $3.139 million versus $14.625 million; adjusted net loss was $1.353 million versus adjusted net earnings of $5.817 million.

• FY basic and diluted loss per share was $0.37 versus $1.71; adjusted loss per share was $0.16 versus adjusted earnings per share of $0.68.

• Q4 adjusted net loss was $0.791 million, or $0.09 per share, versus adjusted net earnings of $3.698 million, or $0.43 per share, in Q4 2023.

Outlook and guidance

• Refinancing the main bank facility in late July is a key focus; discussions with members of the existing bank syndicate are underway.

• Potential additional non-core asset sales are under consideration to strengthen the balance sheet, streamline operations and reposition the business.