the future, page-73

It is probably true that WZR are looking after their management too well, but IMO it is certainly not all "doom & gloom" as is being portrayed in some instances on this forum.

I purchased some more shares for my super fund this morning, and will continue to accumulate if the SP stays around these 6.6 - 6.8 cent levels.

@ BaliHai - You highlighted the below 2 x areas, and from what I understand they are a big reason (particularly the provisions for expected credit losses) why companies like WZR & MME are still showing a nett loss whilst growing revenues at large growth rates:

1. Finance Costs $7.6m (up from $1.3m FY20) big increase possibly a function of increase in loan book size

2. Provision for Expected Credit Loss $8m (up from $4.1m FY20) but also most likely a function of increase in loan book size

Item 1 above - finance costs will obviously continue to rise quickly as the loan book grows , and WZR need to keep trying hard to maintain or increase margins if interest rates continue to go up. They have stated they are doing this.

Item 2 above - And from what I understand about provisions for expected credit losses, these companies have to report a certain % of loans as "provisional futre losses".

So as the loan book grows quickly, so too does the $ amount they need to report as expected credit losses - whereas if & when the loan book growth does slow, so should the provisions (leading to vastly better profitability at that time).

WZR's current excellent average prime 801 credit score will definitely assist the financials in this area - but obviously everyone needs to keep an eye on the quoted 0.98% 90 day arrears figure (which has been rising slowly).

All in all, apart from the "maybe rash" $5m marketing spend on the Olympics marketing, I think this company is progressing really well.

And the rate of loan book growth over an extended period of time is excellent, and it really progressed well in the last reporting period.