Ann: Strategic review outcomes to deliver cash inflows, page-67

You need to draw a distinction between official rates and market rates. When official rates do eventually come back down, none of the risk that dictates market rates will have abated and credit will remain difficult to obtain. ZIP is presently paying rates off the scale, commensurate with risk, and the only way of reducing the cost is to pay it down. In the last 6 months, its interest expense and corporate financing costs were $149 mil, out of its $350.9 mil revenue. It simply does not have anywhere near enough revenue to meet its expenses. Who would take this company over, paying a price sufficient to take out the debt as well as enough goodwill to satisfy shareholders?

This is today's AFR's summary of the business model for the 6 months from July to December 2022.

Zip Co posted a net loss of $241.2 million on sales of $350.9 million for the six months to December 31. It said total transaction volumes climbed 10.5 per cent to $4.86 billion. The group had $361.5 million in debt in convertible notes outstanding at the period end. It incurred interest of $47.7 million on the convertible notes over the same period.