From my understanding, it mostly relates to revenue recognition. Previously, it was calculated based on diminishing basis. It is like mortgages where earlier payment has more interest revenue than principal.
The cash flow is the same over the life of the loan but the firm cannot recognize those early cash flow as interest revenue but as principal repayment. Henceforth, it also impact the size of the loan book because principal repayment has been paid earlier. This means that more interest revenue will be recognized at the later stage of the loan. Quoting the announcement, the return on capital is the same over the life the loan. So, I will expect the profit will be reweighted towards the end of the financial year. Absolute demand seems to be trending upward as commented. Most lending happens in Christmas anyway.
So I wouldn't extrapolate the whole year result based on 1 quarter of EBITDA.
Ann: Trading Update , page-11
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