Humm Group (ASX:HUM) ends FY21 with 121pc profit increase & no...

Humm Group (ASX:HUM) ends FY21 with 121pc profit increase & no dividends
https://the market herald .com.au/humm-group-asxhum-ends-fy21-with-121pc-profit-increase-no-dividends-2021-08-19/

• Humm Group (HUM) releases its full year results, revealing it managed to increase profits by 121.1 per cent to $68.4 million
• HUM's statutory net profit after tax sits at $60.1 million, an increase of 160.2 per cent, from buy now pay later volumes of $1.03 billion
• The BNPL ended FY21 with 2.7 million users and 1.2 million app downloads, with plans underway to launch the business in Canada
• Despite the profit increase, Humm won't pay a final dividend for FY21 and ended the year cashflow negative
• Shares in Humm Group are up 3.72 per cent at 97.5 cents per share

Humm Group (HUM) has released its full year results, revealing it managed to increase profits by 121.1 per cent to $68.4 million.

The buy now pay later company's statutory net profit after tax also saw a hefty increase of 160.2 per cent year-on-year to $60.1 million.

Despite the profit increase, Humm has declared it won't pay a final dividend for FY21 with no interim dividend issued either.

In a statement in today's FY21 results announcement, HUM stated it would review its position on dividends and capital management going forward.

The BNPL business recorded volumes of $1.03 billion through the deferred payment business, while total transaction values hit $2.7 billion.

Humm had 2.7 million users by the end of FY21, an increase of just under 20 per cent, while app downloads totalled 1.2 million.

The company ended the year having expanded into the UK and HUM CEO, Rebecca James, said plans were in place to enter Canada.

"The business continues to perform very strongly, delivering volume growth, and profit up 121 per cent on the prior year," Ms James said.

"We will continue to broaden our customer base and accelerate growth through expansion into the UK and Canada, and by growing our partnership channels as enterprises look to BNPL to help drive customer engagement."

Humm ended June 30 cashflow negative having spent $110.6 million on operating activities, while the BNPL stock had $218.2 million worth of cash in the bank.

Company shares were up 3.72 per cent at 97.5 cents per share at 11:55 am AEST.