What drove Plenti’s (ASX:PLT) FY21 earnings to record levels

Summary

  • Plenti Group Ltd (ASX:PLT) reported strong earnings across the board for the financial year FY21.
  • The company’s loan originations surged 64% on-year to AU$470 million, while the loan book hit AU$615 million, up 61% on-year.
  • The revenue also soared 28% to AU$53.1 million.

Plenti Group Ltd (ASX:PLT) on Tuesday announced a record revenue for the financial year 2021. The financial company which provides a technology-led consumer lending and investing platform in Australia reported strong earnings across the board with record revenue, loan originations and loan book numbers.

Source: © Herrbullermann  | Megapixl.com

The company’s loan originations surged 64% on-year to AU$470 million, while the loan book hit AU$615 million, up 61% on-year. The revenue also soared 28% to AU$53.1 million. 

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What company says

Commenting on the financial results, Plenti Group’s CEO Daniel Foggo said that the company has validated its ongoing investments in the proprietary technology, proving the scalability and operating leverage inherent in the technology-led business. Plenti was well positioned for continued growth in FY22 across all the lending verticals, leveraging the technology platform and customer reach, Foggo also said.

                         

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Plenti achieved strong loan origination growth in the year to 31 March 2021, up 64% on FY20. Lending in the first half was impacted by COVID-19 with on-year growth of 33%. Lending accelerated in the second half reaching 88% growth on the prior year, including 120% growth in the fourth quarter. The company particularly reported robust growth in its automotive finance section.

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Financial priorities

  • Reaching an AU$1 billion loan portfolio by March 2022.
  • Achieving positive monthly cash NPAT prior to June 2022.
  • Driving towards cost to income ratio of below 35% over the medium term.

Source: ©Miflippo  | Megapixl.com

Stock performance

On Monday, 24 May 2021, Plenti’s shares closed at AU$1.21, up 0.050 points, or 4.31%, as against the previous closing on Friday, 21 May 2021. Plenti competes with AUB Group Ltd  (ASX:AUB), Janus Henderson Group plc (ASX: JHG), Netwealth Group Ltd (ASX:NWL), Hub24 Ltd (ASX:HUB), Commonwealth Bank of Australia (ASX:CBA), and National Australia Bank (ASX:NAB) in the financial sector.

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