Ann: Business Update, page-2

A well rounded announcement, glad the securitisation facility is sewn up for another 2yrs, CCV is back operating as a going concern post the class actions which is a big positive.

What will be interesting, is given the subdued H2 and the advance on payments, future years revenue will be hurt (FY21 as they mention). However the flip side, the balance sheet will be significantly stronger as inflows continue (faster), and outgoings for new loans reduce. The below screenshots are from the half year presentation and report.

CCV had available cash of $45.6M at the half year and also $27.5M in securitisation headroom - the class action settlement was already dead and buried. IMO overall a negative announcement, but will open the company up to a potential dividend payment in the FY report.

Although loan book growth would be better, post covid when things normalise, chasing growth for the sake of growth will not be sustainable - so I would think a small dividend and a return to normal growth may be on the cards.... 620M shares on issue, so $6.2M of dividend payments would be a 1c dividend, hardly difficult to manage at the present time, but would represent a significant dividend on the current 17c SP.

All IMO, what are others thoughts?