Ann: Q4 FY20 quarterly business update, page-47

First 47 Last

Share
Profile

Follow
zhanginu

1,828 Posts.

490

08/07/20

13:49

Post #: 45723456
Share

Originally posted by madamswer: ↑

I think that - in the joyous light of the very strong top-line growth - what the overwhelming majority of investors in this company appear to overlook is that this is, at its core, a commercial lending business.

And, as with all business that offer capital for a fee, there is a greater-than-zero chance that not all the capital is recovered.

In this case, the company is indicating a 1% provision will be raised for unrecoverable receivables:

View attachment 2289270

Now, some might be tempted to argue, "Well, 1% is really a negligible amount, so what's the beef?"

However, 1% of last reported receivables of $32m (@ 31 Dec 2019 balance date) translates to a $320k hit to Pre-Tax Profit.

And $320k equates to around 6% of current annualised Gross Profit of, say, $5.5m (Gross Profit for DH2019 was $2.5m).

So, not the stuff of sheep stations, but something about which to be aware.

.

Expand

Compared to some other peers in the BNPL space, 1% is extremely low. Compared to QFE’s historical rate of ~$20k in 2-3 years, this 1% is exponentially higher.

PS: how are you valuing QFE? Am I the only one using a price to book ratio LOL. This is the only way I know how to do financial companies. Also I think I’ve got to value the payments business separately but haven’t decided how.

QFE Price at posting: 69.5¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

IFL

True believers vindicated as CC Capital moves to snap up Insignia

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

PTX

This rare type of lymphoma ruins the body – so do existing treatments. Prescient could have a solution

PSC

Prospect's Mumbezhi Project puts it at the middle of copper's megatrend. And FQM just bought in

STX

Carnarvon becomes Strike's largest holder; market not happy

First 47 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 4.7¢		Change 0.001(2.17%)		Mkt cap ! $17.16M

Open	High	Low	Value	Volume
4.6¢	4.7¢	4.6¢	$10.07K	214.7K

Buyers (Bids)

No.	Vol.	Price($)
1	99499	4.6¢

Sellers (Offers)

Price($)	Vol.	No.
4.7¢	17496	2

View Market Depth

No.	Vol.	Price($)
1	99499	0.046
5	376072	0.045
1	75000	0.044
4	159654	0.041
2	188250	0.040

Price($)	Vol.	No.
0.047	17496	2
0.048	24031	2
0.049	64966	2
0.050	292300	3
0.051	200000	1

Last trade - 10.41am 22/07/2025 (20 minute delay)

QFE (ASX) Chart

Ann: Q4 FY20 quarterly business update, page-47

True believers vindicated as CC Capital moves to snap up Insignia

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

This rare type of lymphoma ruins the body – so do existing treatments. Prescient could have a solution

Prospect's Mumbezhi Project puts it at the middle of copper's megatrend. And FQM just bought in

Carnarvon becomes Strike's largest holder; market not happy

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Q4 FY20 quarterly business update, page-47

Top Stories

True believers vindicated as CC Capital moves to snap up Insignia

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

This rare type of lymphoma ruins the body – so do existing treatments. Prescient could have a solution

Prospect's Mumbezhi Project puts it at the middle of copper's megatrend. And FQM just bought in

Carnarvon becomes Strike's largest holder; market not happy

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News