ASX Earnings Wrap: Non-bank lender Solvar craters 35pc after guidance; United Malt set to be acquired
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It’s earnings season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
Non-bank lender Solvar crashed 35% this morning after forecasting its net profit after tax (NPAT) to fall sharply in FY24.
The company said FY24 NPAT will be impacted by the full year cost of central banks’ rate rise cycle.
Solvar says increases in funding costs are being passed through on new loans written, however it reduces the profit contribution from the back book.
After adjusting for this, with EBITDA expected to remain consistent with FY23, Solvar anticipates a full-year normalised NPAT of $24m-$30m for FY24.
Solvar says it has responded to these headwinds by taking actions, including temporarily slowing loan book growth in New Zealand with an increasing focus on servicing existing customers’ loans.
Meanwhile, bad debt performance is anticipated to remain in the target range of 3.5%-4.5% in FY24, which the company says is testament to its improving credit quality in the face of macroeconomic headwinds
Management expects profitability to exceed historical levels beyond FY24, as the company continues to maintain and expand yield on new loan originations.
Janus is in the initial stages of executing its strategic plan, and early progress has been tangible, as the fundie delivered its two best net flow quarters in nearly three years.
Ali Dibadj, CEO, says that he was very pleased with the direction the company is heading in.
“We continue to deliver good quarterly results, investment performance is solid, we are generating substantial cash flow, and we have a strong and stable balance sheet.
“Our path to delivering consistent organic growth will not be linear, and we remain encouraged with the momentum and activity levels in the business,” said Dibadj.
Not earnings related, but the malt brewer announced that its bidder, Malteries Soufflet, has advised United Malt that the Australian Competition and Consumer Commission (ACCC) does not intend to conduct a public review of the proposed acquisition.
This means the acquisition of United Malt by Malteries Soufflet will go ahead.
In early July, UMG told the market that French malt producer Malteries Soufflet has proposed to buy 100% of UMG at $5 a share.