Ann: Change in substantial holding, page-13

From a week old news article:

"This strategy coincided with an improvement in its average Equifax credit score, rising from 704 for FY22 to 724 for FY23. 83% of MME's loans had a closing Equifax score of more than 600 for FY23, as compared to 79% in FY22 and 63% in FY21."

I find the reverse of this statement to be more interesting.

FY21: 37% of loans <600 credit score.
FY22: 21% of loans <600
FY23: 17% of loans <600 (20% lower proportion of low-credit loans YoY)

So I'm thinking that means: they let the low-credit score loans run off - during the year some of them will pay them off or go into default, and then the company will not initiate a new low-credit loan customer to replace it. So low-credit loans getting lower by the day. Being replaced by whatever has the best return, I assume (high interest, low defaults, low marketing costs). Answer being AutoPay? Or personal loans to higher credit score customers.

So Equifax score is regularly rising. Then the assumption being: higher credit score customers are safer and less likely to default, so delivering benefits to the company?


Combined with interest & fees savings on the corporate debt, after the paydown. "The repayment trims its corporate facility principal to its original size, helping to reduce interest costs by around $6 million per annum."

"MME expects its cash position to further improve in FY24, on the back of reductions to corporate debt that have lightened the burden of interest cost payments."

RBA finished raising?