the future, page-71

Thanks for your response:

Apologies for repeating points that may have already been raised on this forum but if I'm not mistaken WZR revenue growth has been:
FY19 = $3m
FY20 = $7m
FY21 = $27m
FY22 = $59m

Cash earnings (EBTDA) has been:
FY19 = -$6.4m
FY20 = -$13.7m
FY21 = -$9.7m
FY22 = -$7.4m

But NPAT has been:
FY19 = -$7.7m
FY20 = -$23.5m
FY21 = -$17.6m
FY22 = TBA

I really struggle to reconcile how they produced a loss of circa -$5m to -$8m in the very early years (FY16 through to FY19) when revenues were only $1m to $3m, yet now with revenues significantly higher (FY21 $27m, FY22 $59m) they are generating even larger losses. This just doesn't seem to make logical financial sense!

In FY21 the big expense line items were:
Employee Benefits $14.2m (up from $9.5m FY20)
Marketing $6.3m (up from $4.5m FY20)
Finance Costs $7.6m (up from $1.3m FY20) big increase possibly a function of increase in loan book size
Provision for Expected Credit Loss $8m (up from $4.1m FY20) but also most likely a function of increase in loan book size

Can these items be better managed? Has Management clearly outlined what has been done in FY22 to combat these profit eroders or are they intentionally continuing to pursue a more growth-based strategy? I suppose we will learn more next Tuesday 30 August at the results presentation.

Can someone confirm what the Enterprise Value (EV) of WZR is today? Is the unrestricted cash of $48.1m deducted from market cap? What do we do with the debt given most of it relates to amounts subsequently loaned to customers? Is it only the net debt that we add back to market cap to determine EV?

In any case, by my calculations, the current price of WZR must be getting very close to Net Asset Value (NAV). Surely this is cheap and being grossly overlooked by the market at $0.07 per share?