Ann: HUM - FY22 financial results briefing, page-41

Let's call the abandoned Consumer Division sale to Latitude a complete debacle.

All directors except Andrew Abercrombie have resigned and Latitude CEO Ahmed Fahour has fallen on his sword and resigned.

I had supported the sale as I could attribute $1.80 ish in value to the post sales components. What I didn't count on was the HUM Board nuking itself. No director or major shareholder has come out unscathed. Thankfully there is still a really good business in tact and as the dust settles investors will appreciate what the go forward business looks like.

Closing NZ bnpl and rationalising Bundll in Australia is sensible. It looks like avoiding the losses/costs in these two businesses will add back approx $30m CNPAT on a full year basis.

I think it is fair to continue the UK and Canada expansion for another year and see whether scale can be achieved in each market.

Some really great things came out of the presentation and comments as per the transcript.

1. Flexicommercial is growing strongly (vol written +103% in FY'22)
2. Commercial NZ to emulate successful Flexicommercial Aust broker network
3. Small things in Aust to be rationalised
4. Delinquency costs managed extremely well (even better when exclude Aust Small things)
5. Ability to reprice products to match increases in funding costs
6. Growth returning to travel segment in Q4 and this will turbocharge FY'23
7. Many of the legacy IT system issues are almost fixed
8. With continued strong growth in Commercial and rationalised bnpl FY'24 CNPAT should well exceed $100m
9. HUM is extremely well funded, lots of headroom on both its corporate facility and the facilities to fund its products growth
10. HUM now has some optionality
11. HUM does not need acquisitions to grow as its organic growth profile is pleasingly very strong.

Cheers and GLTAH........D

p.s I have changed by sentiment to BUY