Plenti to smile about: Maiden cash profit, on track for $5bn loan book, shares on a ripper
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Achieving a maiden cash profit and a $1bn loan portfolio is testament to Plenti Group’s ability to deliver on its key strategic goals.
ASX-listed fintech lender Plenti Group (ASX:PLT) was up 13% yesterday, after announcing its maiden cash profit.
The company expects to be Cash NPAT profitable in the half ending 31 March as it streaks ahead on its upward trajectory..
It’s been a rapid ascent for Plenti, particularly since it only reported positive monthly Cash NPAT for the first time in October 2021.
Since then, monthly Cash NPAT has risen each month, and it now forecasts delivering Cash NPAT of at least $2.2 million for the current half.
The forecast would result in the company achieving Cash NPAT profitability for the full FY22 financial year, which is a significant milestone.
In line with this growth in profitability, Plenti says it has also achieved its loan book growth objective for the financial year.
The company had previously announced a target of $1.25 billion for the year, but the book has already amassed approximately $1.275 billion.
Last week, Plenti secured a two-year $18m debt facility to support this rapid growth in the loan book.
Consistent with the company’s general approach, the facility was structured in an innovative way, providing Plenti with much greater flexibility than more traditional corporate debt funding structures.
“Securing this facility provides a cost effective, flexible and non-dilutive solution to funding our ongoing loan portfolio growth,” said Foggo.
The company has previously declared its ambitions of reaching $5bn by 2025.
“With this funding facility in place and Plenti having reached monthly Cash NPAT profitability, we are better placed than ever to pursue the growth opportunities in front of us and to achieve our medium-term target of reaching a $5 billion loan book,” Foggo declared.
Plenti’s enormous gains in market share has always been driven by ongoing investment in its proprietary technology and the continued expansion of its sales and distribution capabilities.
It successfully increased the active broker base to over 200 new partners in the last quarter by leveraging its technology and industry relationships.
“Our proprietary technology platform is delivering operating leverage as we scale, while continuing to provide exceptional customer experiences, helping us take market share,” Foggo said.
But profitability has always been the number one goal for Plenti, and to achieve it after only being listed since September 2020 is testament to its management capability.
“We are pleased to be upgrading the forecast for our key profitability metric, as we believe profitability is the critical yardstick against which any business should be measured,” said Foggo.
This article was developed in collaboration with Plenti Group, 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.