Ann: Solvar FY23 Results and Investor Briefing, page-7

First 7 Last

Share
Profile

Follow
Dealsmatey

426 Posts.

62

18/08/23

20:33

Post #: 69427330
Share

Originally posted by JoeGambler: ↑

That question on why they got it wrong at the interim wasnt specifically asked, but there was one on hedging etc.

Basically, they dont hedge M3 book because its high margin and increases in cost can be passed on off setting back book reduction in margin.

I have to assume it is the speed at which rates have risen that caught them. Only time to reprice the book will fix this.

the concerns were acknowledged and that they could have done better with the funding stack. However, pointed to reduction in margin they paid over BBSW over last few years and the big headroom giving them edge of competitors. CEO confident business will increase market share as most competitors would be in a worse position.

again reiterated FY25 bounce back and rebuilding to an ROE of 15%. CEO confident that can be achieved regardless in FY26, and if rates move in their favour that could occur earlier in FY25.

ASIC issue has not progressed yet, still early stages and no provision.

Moving up credit quality curve to reduce bad debts, increase leverage and drive efficiciency more than offsetting reduction in yield. Slower to play out due to troubles in NZ which they believe will resolve by FY25 and obviously massive rise in rates.

Board actively considering buybacks or acquisition with the 80m in free cash.

Cyber and compliance investment mostly a one off with much lower costs ongoing after build out of better capabilities.

CEO confident of bad debt outlook remaining in stated target range due to low unemployment. Most customers only have one loan with SVR and their biggest commitment. The car essential to their lives. Some customers getting slower to pay, but intention is there and as long as job is retained no problem.

(predictions of unemployment rising in AUS/NZ obviously will challenge this rosy outlook a bit.)

more detail at AGM with more refined guidance.

Expand

The loan book is much more debt funded than equity funded compared to prior year.

So, I am not so sure that margins can recover to historical levels, unless of course this mix changes back toward equity.

SVR Price at posting: $1.31 Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

Thursday's HotCopper trends: $266M LTR placement, Trigg expansion | Aug 7

ASX Market Close: Health Care stocks lead index lower | August 7, 2025

MQR

'We're extremely encouraged': Marquee expands footprint at Mt Clement

Oz will likely unveil commodity price supports, but don't expect Trumpian flare

LTR

Liontown locks in $266M placement to help cashflow, Kathleen Valley ramp-up

First 7 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 $1.59		Change -0.030(1.85%)		Mkt cap ! $308.5M

Open	High	Low	Value	Volume
$1.61	$1.61	$1.58	$301.4K	189.7K

Buyers (Bids)

No.	Vol.	Price($)
2	38706	$1.59

Sellers (Offers)

Price($)	Vol.	No.
$1.61	1892	1

View Market Depth

No.	Vol.	Price($)
1	12149	1.590
1	8508	1.585
4	36600	1.580
1	24000	1.570
2	6125	1.565

Price($)	Vol.	No.
1.610	1892	1
1.620	6304	3
1.630	3367	2
1.640	13232	1
1.650	51800	2

Last trade - 16.10pm 07/08/2025 (20 minute delay)

SVR (ASX) Chart

Ann: Solvar FY23 Results and Investor Briefing, page-7

Thursday's HotCopper trends: $266M LTR placement, Trigg expansion | Aug 7

ASX Market Close: Health Care stocks lead index lower | August 7, 2025

'We're extremely encouraged': Marquee expands footprint at Mt Clement

Oz will likely unveil commodity price supports, but don't expect Trumpian flare

Liontown locks in $266M placement to help cashflow, Kathleen Valley ramp-up

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Solvar FY23 Results and Investor Briefing, page-7

Top Stories

Thursday's HotCopper trends: $266M LTR placement, Trigg expansion | Aug 7

ASX Market Close: Health Care stocks lead index lower | August 7, 2025

'We're extremely encouraged': Marquee expands footprint at Mt Clement

Oz will likely unveil commodity price supports, but don't expect Trumpian flare

Liontown locks in $266M placement to help cashflow, Kathleen Valley ramp-up

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News