Openpay Group Ltd (ASX: OPY) (Openpay) is pleased to update the market with its Appendix 4E Preliminary Final Report and unaudited consolidated financial statements. In accordance with the company’s planned timetable, the final audited financial statements will be released on or prior to 30 September. Openpay reported strong FY22 performance and also made some important decisions during and after FY22. These decisions were to simplify Openpay’s model further to become a leaner, more efficient business, focused on the Australian market, where it is on a clear path to deliver cash EBITDA profitability by June 2023.
CEO of Openpay, Dion Appel commented:
“During and shortly after FY22, Openpay rapidly responded to changes in the equity market and macroeconomic environment and simplified its business model. We moved quickly and made some tough decisions including exiting the UK market in January and pausing our investment into the US market in July. These decisions enabled laser beam focus on Australia, our most mature market, and the one closest to delivering cash profitability.
The simplification strategy has resulted in a leaner and more efficient business where cost synergies will continue to flow into 2023, alongside the momentum of stronger performance, industry leading margins and unit economics and improved bad debts and arrears. It has also put a stop to the high investment required to pursue the US opportunity. In August, Openpay also successfully completed a Private Placement of $18.25m and Share Purchase Plan of $5.86m.
These funds will be leveraged to further solidify our simplified strategy to deliver cash EBITDA profitability by June 2023.”