Fintech Beforepay Releases Profitable Half Year Results to 31 December 2023

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Beforepay (ASX:B4P) has been named 2023 Ethical Lender of the Year by Pan Finance.

A screen in the Beforepay app showing how a customer can Cash Out $200. The screen shows a list of the customer's repayments below an orange Cash Out Now button.

Beforepay provides eligible customers with access to advances of up to $2000 for a 5% fixed transaction fee, with no interest or late fees.

Beforepay delivers first half-year profit of $2.2m and half-yearly revenues of $17.6m; announces new growth initiatives

Beforepay Group Limited (ASX:B4P)

Our achievement of profitability and our continued balance-sheet strength, with more than $18 million of unrestricted cash, now enables us to launch additional growth initiatives.”

— Jamie Twiss, CEO of Beforepay

SYDNEY, AUSTRALIA, NSW, AUSTRALIA, February 26, 2024 / — Beforepay Group Limited (Beforepay or the Company) (ASX: B4P) has released its results for the half-year ended 31 December 2023 (H1 FY24).

Beforepay achieved profitability and significant improvement across key metrics in H1 FY24.

Highlights include:

– Beforepay achieved an audited H1 FY24 net profit before tax (NPBT) of $2.2m and earnings before interest, tax, depreciation, amortisation (EBITDA) of $4.2m (unaudited).

– Advances of $358.6m, up 18% on H1 FY23 (year-on-year or YoY).

– Net defaults % improved to 1.3%, down by almost half from 2.3% in H1 FY23.

– Beforepay revenue increased by 21% YoY to $17.6m from $14.6m in H1 FY23.

– Net transaction margin (NTM) of $10.1m, up 99% YoY from $5.1m in H1 FY23, driven by growth in advance volume and the lower level of defaults.

– Customer acquisition cost (CAC) of new users declined 48% YoY to $31.

– Operating expenses (marketing and overheads) declined 27% YoY on H1 FY23, to $7.7m.

– Continued balance sheet strength with unrestricted cash on hand of $18.9m and an equity position of $29.7m. Beforepay continues to carry no debt at the operating-company level, only debt to finance receivables.

– We intend to launch a new, separately branded business line to provide the Company’s lending technology and AI-powered risk models to partners such as offshore banks. The Company also intends to launch new lending products with larger maximum limits and longer durations.

– As previously announced, Beforepay has signed a new 3-year receivables debt facility agreement for $55.0m with Balmain Group and Longreach Credit Investors (each defined below) as lenders, to extend and expand the existing debt facility and to support continued growth in our loan book.

– Beforepay was awarded both the Ethical Lender of the Year 2023 by Wealth and Finance International and the Best App-Based Lending Company 2023 – Australia in the APAC Business Awards 2023.

Beforepay CEO Jamie Twiss said, “Beforepay has achieved profitability, with a half-yearly audited profit of $2.2 million. This outcome has been driven by consistent execution of our strategy, including continued top-line growth, tightly controlled costs, and strong default outcomes, and we continue to support more customers than ever with a safe, affordable alternative to revolving debt. Our achievement of profitability and our continued balance-sheet strength, with more than $18 million of unrestricted cash, now enables us to launch additional growth initiatives. I’m excited for our forthcoming launch of a new business line to provide our AI-powered risk models as well as our automated lending platform to partners, as well as new lending products.”

About Beforepay

Beforepay is an ethical-lending fintech that was founded in 2019 to support working Australians who have not been well-served by the traditional financial services industry. Beforepay’s flagship pay advance product is a safe and affordable way for customers to access a portion of their pay, on demand, for a single fixed fee to help them through short-term cash-flow challenges.

Important notice

This announcement contains selected summary information only and is provided for general information purposes only. It should be read in conjunction with Beforepay Group’s continuous disclosure announcements available at Nothing in this announcement constitutes financial product, investment, legal, tax, accounting or other advice and it is not to be relied upon in substitution for the recipient’s own exercise of independent judgment regarding the operations, financial condition and prospects of the Beforepay Group. To the maximum extent permitted by law, no member of the Beforepay Group makes a representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this announcement, nor accepts any liability (including, without limitation, any liability arising from fault or negligence) for any loss whatsoever arising from the use of this announcement or its contents or otherwise arising in connection with it.

This announcement includes information regarding past performance of Beforepay Group and investors should be aware that past performance is not and should not be relied upon as being indicative of future performance. Investors should note that certain financial data included in this announcement is not recognised under the Australian Accounting Standards and is classified as ‘non-IFRS financial information’ under ASIC Regulatory Guide 230 ‘Disclosing non-IFRS financial information’ (‘RG 230’). Beforepay Group considers that non-IFRS information provides useful information to users in measuring the financial performance and position of the Beforepay Group. The non-IFRS financial measures do not have standardised meanings under Australian Accounting Standards and therefore may not be comparable to similarly titled measures determined in accordance with Australian Accounting Standards. Readers are cautioned therefore not to place undue reliance on any non-IFRS financial information and ratios in this announcement.

Readers are cautioned not to place undue reliance on any non-IFRS financial information and ratios in this announcement. All dollar values are in Australian dollars ($ or A$) unless stated otherwise. All figures not included in the audited financial statements are unaudited. Change percentages are calculated using unrounded figures and may differ slightly from a number calculated using rounded figures.

Noeleene Yap
Beforepay Group Limited
+61 489 995 082
[email protected]
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