Some calculations:My questions failed to work in the call, so I...

Some calculations:



My questions failed to work in the call, so I emailed them, waiting on an answer.

Above are some calculations. Note the 2 months vs 4 months.

- Commissions rose: an increased focus on Autopay, I assume.
- Marketing remains low. Ok.
- Product design is back to normal. They say they'll cease some less popular products? So stop putting money into unnecessary staff effort, and redirect the lending capacity to Autopay.
- Admin is sort of flat.
- Impairment is sort of flat, but on a reducing Gross Customer Receivables balance. So increasing in % terms.

- The abnormal one: NPBT. -$4m for the 4 months? $16m for 8 months, $12m for 12 months. I'm seeking clarification from management. Did the $6m ECL provision fall completely within the final quarter? In which case, NPBT might have been -$4m for the quarter / 4 months, but +$2m if excluding ECL provision overlay.
- Could the ECL provision be considered overdue and being attributable to the whole year? So -$4m NPBT for the quarter not being completely fair, but $18m NPBT (FY, pre-provision overlay) falling to $12m (FY, after provision overlay) being fair?
- That's assuming the $6m provision was realistic for a full year, and they'll not do multiple of them within the year.



Also I'm hoping they'll clarify this for me:

Gross Customer Receivables // Borrowings
2H22: 1345 // 1358, 1.01 ratio, -$13m net
1H23: 1237 // 1235, 0.999 ratio, +$2m net
2H23: 1150 // 1115, 0.970 ratio, +$35m net

- The ratio has improved, as expected after the raising. Is this similar to an actual loan covenant?
- The net amount improved by $33m half on half. But we raised $40-42m? Why is this improvement LESS than the raised amount? Wouldn't that be a net negative change attributable to underlying performance for the half? Is there another explanation where the cash could end up that is not reducing borrowings?



NPBT for the HY was $3m, I think.
Net Assets $122 -> $166m. (+$44m)
Raising $40-42m.
That sounds about right? $41m raised, $3m NPBT = +$44m to net assets. So ok?

So I guess the excess $3m is ending up somewhere in the net assets, even if not showing up in Gross Receivables // Borrowings.

H1:

FY:

I see:
Cash +$13m
Gross Receivables minus Borrowings +$33m
Provisioning -$1m
Intangibles -$2m
Other +$1m

So the answer is, we raised $41m, and also made some NPBT.
$33m was put towards Borrowings against Receivables, and $13m excess was left in cash. = $46m total (more than the raised amount), and then a couple of small things like writing down intangibles.


So overall we did ok? Even though the 4 months seemed to show -$4m NPBT. But that might have a fair explanation.