Q: What were the main areas of focus for humm Group in the last six months? A: The focus was on aligning the business around the customer, prioritizing profitable SME asset finance, enhancing the customer value proposition, and reducing unnecessary costs and complexities.
Q: How did humm Group respond to fluctuating macro-economic conditions in 2023? A: The company focused on delivering outstanding customer outcomes, the best value for money, operating efficiently, and reviewing IT platforms and operations to continue delivering shareholder value.
Q: What was humm Group's normalized cash profit for FY23? A: The company reported a normalized cash profit of $75 million after tax for the year ended 30 June 2023.
Q: Did humm Group announce any shareholder return initiatives in 2023? A: Yes, they announced an on-market share buy-back of up to $10 million across FY24 and paid a fully franked final dividend of 1.0 cent per share, bringing the full year dividend to 2.0 cents per share.
Q: What improvements were made in humm Group's credit decision engine in FY23? A: The company enhanced its credit decision engine, achieving a historic low net loss to ANR of 1.8% in FY23, a 60 basis points improvement on the previous corresponding period.
Q: How has humm Group managed its operational costs? A: More than $18.6 million in costs, including reductions in marketing, payroll, and other operating expenses, have been removed.
Q: What growth did humm Group experience in its receivables book? A: The receivables book grew by over 27% to $4.2 billion, primarily financing larger transactions for small to medium businesses and consumers.
Q: Can you highlight the performance of humm Group's flexicommercial business? A: flexicommercial, a provider of specialist asset finance, reported over $2.4 billion in receivables with an average loan life of 4.8 years, indicating a diverse and resilient portfolio.
Q: What challenges and outcomes did humm Group's Consumer Finance face in FY23? A: The Consumer Finance segment faced higher funding costs, leading to margin compression and competitive pricing pressures. Nonetheless, the normalized cash profit for this segment was $32.7 million, a 20% decrease due to these challenges.
Q: What are the future priorities for humm Group? A: humm Group's immediate priorities include improving technology, removing unprofitable products, focusing on credit management, and investing in process and technology improvements, especially in their Commercial and Consumer businesses. They also aim to continue cost savings and strategic capital initiatives for shareholder value.
This article is factual in nature based upon the recent AGM presentation.