Aspial Lifestyle (5UF) H1 2024 earnings summary

Executive summary

• 1H2024 revenue rose 9.8% YoY to $251.2m; profit before tax increased 45% to $18.0m and net profit rose 49% to $14.5m.

• Growth reflected stronger retail sales, pawnbroking interest income and secured lending revenue, partly offset by higher operating expenses and finance costs.

Financial highlights

• Revenue was $251.2m vs $228.8m; material costs increased 5% to $157.0m, broadly in line with higher revenue.

• Profit before tax reached $18.0m vs $12.4m; income tax expense was $3.5m vs $2.7m, and net profit was $14.5m vs $9.8m.

• Employee benefits rose 11% to $26.6m, depreciation and amortisation rose 9% to $15.8m, finance costs rose 17% to $16.3m, and other operating expenses rose 18% to $21.6m.

• Total comprehensive income was $16.1m vs $9.7m; OCI included a $776k net fair-value gain on equity instruments and a $799k net gain on cash flow hedges.

Outlook and guidance

• Short-term loan demand is expected to remain healthy through 2024, while BigFundr is expected to sustain momentum in secured lending.

• Barring unforeseen circumstances, continued business growth and profitability are expected in 2024.