Happy days as lender Money3 upgrades earnings; shares hit record high
Lender Money3 has continued its upward trajectory, today releasing an earnings upgrade that drove the stock to record levels.
Money3 (ASX:MNY) — which provides car loans up to $35,000 and cash loans to $8000 — is expecting full-year profit after tax of $32 million.
That compares with guidance of $31 million announced in May.
A final dividend — to be confirmed with final results — will be “at least 4.5c per share”.
Money3 believes it is benefiting from the 2018 Banking Royal commission which “is likely to drive greater levels of conservatism in mainstream lending for personal and automotive loans increasing Money3’s market opportunity”.
The news initially sent shares up 10 per cent to an intraday high of $2.22 — their highest level since listing in 2006.
But the stock cooled to $2.07 by close — valuing the company at about $350 million.
Money3 also announced a number of board changes.
Founder Kang Tan would step down from the board along with Leath Nicholson.
Ray Malone has been appointed as executive chairman “until 30 June 2019 to facilitate the company’s exit from small amount credit contract lending, at which time he will then become non-executive chairman”.
Money3 said it would not pursue equity capital raisings at the moment.