Prospa (ASX:PGL) shares zoom on 4QFY22 results

3 min read | July 28, 2022 09:20 PM PDT | By Bhawna Gupta

Prospa (ASX:PGL) shares zoom on 4QFY22 results — Image source: © Py2000 | Megapixl.com

A look at the 4QFY22 report

Prospa reported EBITDA for the entire year of around AU$12 million, up from AU$0.5 million in FY 21. Business expansion and investments in foundational technology were the driving forces behind this.

Originations in 4QFY22 were AU$245.7 million, a significant increase of 35% over the previous equivalent quarter (4QFY21: AU$182.5 million). The company's revenues increased by 61% over pcp (4QFY21: AU$33.4 million) to AU$53.9 million.

A market-leading Net Promoter Score of over 80 and a rise of 2,100 from the previous quarter brought the total number of active customers to 16,100.

Prospa's growth was supported by its solid financial position and funding base, which included AU$105.8 million in cash (of which AU$49.9 million is unrestricted), AU$702.0 million in third-party facilities that were available (of which AU$59.2 million were available but undrawn).

The AU$58.8 million operating cash flow for FY22 (up 78% from AU$33.1 million in FY21) demonstrates the underlying business's strong ability to generate cash.

Data Source- Company announcement dated 27 July 2022

Shares buyback

Prospa came up with an on-market share buy-back scheme on 16 February 2022 for up to 10% of PGL's issued share capital over 12 months. The Board decided to return capital to shareholders as a result of the Group's continued good performance.

Up till 30 June 2022, Prospa has repurchased 690,876 common shares. Following the presentation of full-year results, it is planned to restart the program. It will continue to be supported by Prospa's current level of unrestricted funds.

About Prospa

Prospa boasts to be a leader in providing cash flow management solutions and services that support the expansion and success of small businesses. The company, headquartered in Sydney, employs more than 270 employees and conducts business throughout Australia and New Zealand.

Prospa creates cash flow solutions and services that assist small businesses in developing, administering their operations, and making purchases using a single app.

The shares of Prospa have recorded a positive growth of around 40% in the last month; however, the shares have risen about 14% on a Y-T-D basis.

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