Ann: FXL - Full Year 2020 Trading Update, page-97

With FXL, the problem is not the business, it is the messenger.

Look, the result in H2 looks atrocious (NPAT dropped from $34.5M to $29M. But looking deeper, it is a great growth story
1. NPAT excluding commercial leasing is $25.1M in H1 and $35M in H2.
2. The $31M provision for COVID-19 is simply an estimate of losses. These losses may not materialise in full and many could be reversed in FY21, so we really should be looking at $60M NPAT as the normalised view.
3. We are trading at 8 times NPAT, the only profitable BNPL and bad debts reducing in trying times. To me that is success
4. Transaction volume for Jun20 was $0.5b compared to $2.0b for the 11 months ended May20. Add back commercial leasing transactions ($147M), we'd probably exceeded FY19. Jun20 growth is astronomical and don't be surprised if Jul20 growth continues on the same path and RJ announces something before the annual report.
5. The continuing operation has grown 16% year on year.

The problem is not the results, it is the articulation IMO.