Credit Intelligence’s first half solidifies cash position as it expands further into target markets

Credit Intelligence’s solid first half has demonstrated its ability to produce consistent performance over time.

Fintech company Credit Intelligence (ASX:CI1) has delivered a strong first half in FY22, as it continues to solidify its financial position.

For the first half of FY22, the company reported top line revenue of $7.5m, and a bottom line profit after tax attributable to members of $1.6m.

The results were a slight improvement from the previous year’s half, which recorded $7.3m in revenue and $1.5m in profit.

CI1’s core business, which includes bankruptcy administration services and individual voluntary arrangement consultancy, has performed consistently given the recent adverse economic impact of COVID-19 in Hong Kong.

The company’s Australian business, led by its subsidiary ChapterTwo, were positive with ChapterTwo’s revenue rising by 150% on pcp to $0.7m following the release of its Debt Management app.

The contributions from CI1’s Singaporean business, which focuses on providing credit services to local small businesses and individuals, also delivered positive results as the company saw an opportunity to expand in a challenging economic climate.

During the half, CI1’s Hong Kong based subsidiary OneStep launched an app that offers a BNPL service to its existing client base, which transacted $140k funds to clients.

Overall, CI1 finished the half with a positive operating cash inflow of $1.4m resulting in total cash inflow of $0.6m, solidifying its financial position further.

Productive half

The first half has been particularly productive for CI1, as it embarked on various initiatives in its target markets of Hong Kong, Australia and Singapore.

In Hong Kong, the company officially launched its corporate buy-now-pay-later (BNPL) app OneFlexi, catering to small and medium enterprises (SME) in the island city by offering them a three-month interest-free option to pay for selected services.

The app, which now offers the services to over 20,000 SME clients, is powered by an AI-based technology developed by OneStep IT, a company that’s 60% owned by CI1.

CI1 has also embarked on a ‘green BNPL’ offering during the half, signing agreements with various Hong Kong companies to promote recycling and provide green financing.

In Australia, debt restructuring arm Chapter Two is rapidly growing and has been delivering exceptional results.

Chapter Two increased its revenue in Q1 FY22 by 170% from the same period last year, leading to a 150% growth for the half.

In September 2021, Chapter Two launched the first of its kind debt management app in Australia. The app has the ability to list all of the clients’ debts in one place, removing the need for multiple internet banking accounts and direct debits.

Founded in 2015, ChapterTwo’s debt solution services are especially relevant during the pandemic, as they provide an alternative way for people to avoid bankruptcy through ‘informal debt arrangements’.

Meanwhile, CI1’s YOZO platform, a product of a collaboration with the University of Technology Sydney (UTS), is a unique offering within the BNPL segment and has the potential to disrupt the SME lending market in Australia and overseas.

The platform leverages AI and machine learning to help small businesses manage payments and improve their cash flow.

This article was developed in collaboration with Credit Intelligence, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.