Z1P result was not a total wreck and some positives in there, plenty of cash to get them through to" cashflow positive state" in 2024! S/P is still going down regardless. It is possible if they get the right systems in place and the right credit quality checks they may do ok, but credit controls on the sector will continue to evolve and suspect it will look quite different by 2024.
Percentage of arrears has continued to balloon this year as has net bad debts rising from 2.83% to 3.40%
This is, and has always been one of the major concerns for LBY. All well and good recognising arrears as outstanding income, unfortunately most of it appears to be unremarkable and bad!!!
Moment of truth is close at hand. IPO document was full of smoke and mirrors IMO and plenty of retail punters have paid the price. Created management wealth out of fresh air and that's where it has returned to, at the cost of others.
I don't know how this will turn out, but think it unlikely anybody is going to front up with enough capital to get them through to next year, let alone 2024.
Inflation is rising, interest rates and mortgage rates increasing and the largest users of BNPL are likely to have less ability to pay, not more.
A train wreck pretty much from the start, good luck to those who have remained faithful or hopeful.
