Latitude Group Holdings FY23 Results Announcement

Latitude Group Holdings FY23 Results Announcement

1. Latitude Group Holdings reported a statutory NPAT loss of $137.9m from continuing operations and $158.5m including discontinued operations for FY23.
   

2. The loss includes $68.3m in cyber-related costs and provisions.
   
   

3. FY23 Cash NPAT was $18.4m, aligning with the company's guidance.
   
   

4. Transaction volumes were $7.6bn, a 4% decrease YoY but saw an 11% increase in the second half of the year (HoH).
   
   

5. Receivables stood at $6.2bn, down 4% YoY but slightly up by 0.3% HoH.
   
   

6. Net interest margin remained stable at 9.8%.
   
   

7. Delinquencies improved, with 90+ days past due (dpd) declining by 35bps HoH to 0.92%.
   
   

8. The company maintained a strong balance sheet with $1.3bn of headroom and a tangible equity ratio of 6.8%.
   
   

9. Latitude expanded retail distribution through new partnerships and re-signed key partners.
   
   

10. The company sold Hallmark Insurance and Symple Loans Canada portfolio and exited the Buy Now Pay Later sector in Australia and New Zealand.
    
    

11. Operational expenses were managed with a 16% reduction in headcount in 2H23.
    
    

12. Latitude faced challenges from macro conditions, higher funding costs, inflation, and a significant cyber-attack in March 2023.
    
    

13. The company is focusing on its core sales finance and personal lending segments in Australia and New Zealand.
    
    

14. Latitude is optimistic about growth potential due to favorable economic conditions and management actions planned for 2024.
    
    

15. Interest rate increases are expected to have peaked, with potential cuts forecasted in the next 12 months, supporting credit demand.
    
    

16. Net interest margins are expected to expand in FY24 through pricing initiatives despite rising funding costs.

This announcement is a summary of the company approved ASX announcement on 23/2/2024.