Plenti upgraded its cash profit forecast for the six months ending 31 March 2022.
The lender also announced that it had achieved its loan book growth target for the financial year.
Plenti is a technology-driven company engaged in consumer lending and investment business.
The share price of Plenti Group Ltd (ASX:PLT) rose nearly 18% in the early trade on Wednesday after the fintech lender announced that it had upgraded its cash profit forecast for the six months ending 31 March 2022. The forecast has been raised from AU$1 million to AU$2.2 million.
By 10:10 AM (AEST), the stock was trading at AU$1.06, up 16.57. The stock closed at AU$0.90 on Tuesday. The stock’s 52-week high and low stand at AU$1.69 and AU$0.85, respectively.
In its latest ASX release, Plenti said that it had expected to be cash net profit after tax (NPAT) profitable for the full year to 31 March 2022. The lender also announced that it had achieved its loan book growth target for the financial year.
Plenti Group is a technology-driven company engaged in the consumer lending and investment business.
Commenting on the development, Plenti’s Chief Executive Officer (CEO), Daniel Foggo, said, “Our proprietary technology platform is delivering operating leverage as we scale while continuing to provide exceptional customer experiences, helping us take market share.
“Having moved to a positive Cash NPAT position, combined with the attractive corporate debt facility announced last week, Plenti is well placed to continue its growth into the next financial year,” he added.
Furthermore, Plenti said that it had already achieved its financial year loan portfolio target of AU$1.25 billion, with the current loan portfolio at nearly AU$1.275 billion.
Debt facility agreement
Plenti last week signed a corporate debt facility agreement with an undisclosed Australian funder to provide capital to support its ongoing business growth. The fintech lender intends to use the funding from the facility to boost growth in its warehouses and ABS funding structures.
The facility will initially be drawn to AU$18 million. The company said that the facility size was linked to its securitised loan portfolio and was expected to grow in line with loan book growth.
Meanwhile, in 1HFY22, Plenti reported record revenue of AU$37 million, up 43% on the previous corresponding period.
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