Harmoney Corp Limited (ASX/NZX: HMY; “Harmoney” or “the Company”) is pleased to report its results for the six months ended December 31, 2021 (1HFY22).

Highlights of 1HFY22:

● New customer onboarding increased 224% to $129 million from the prior corresponding period (pcp), demonstrating the continued success of Harmoney’s unique 100% consumer direct (B2C) model

● A record end-of-period loan portfolio of $557 million; accelerates further to reach more than 600 million dollars at the end of February 2022

● Increase forecast on pro forma loan portfolio to over $650m (30% increase on pcp) and now guide to Cash NPAT profitability as of June 30, 2022

● The Australian portfolio reaches 185 million Australian dollars, up 83% on pcp and 37% over the previous half

● Group over 90 days arrears at 0.46% and principal losses at 3.8%, remaining at historically low levels

● Increased funding diversity with four warehouses (including 3 of the “Big 4”) and asset securitization, reducing the cost of funds by 330 basis points on pcp.

● Significant unused funding capacity of NZ$304 million in Australian and New Zealand warehouses

● Achieved profitability on Cash NPAT pro forma demonstrating the superior profitability of Harmoney’s business model

• Key key metrics of increased account acquisition, new loan originations (+224%) and net lending margin which are expected to drive increased receivables and revenue growth over the coming years current and future thanks to Harmoney’s 100% direct consumer model, with a growing number of new customers returning later for future needs

Strong increase in new creations of strategic marketing initiatives

Harmoney delivered an impressive set of results for the first half of fiscal 2022. New creations grew by 224% through dedicated marketing spend, delivering scale and increasing customer awareness in the broader Australian market. The loan portfolio continued its growth trajectory, reaching NZ$557 million and generating 19% growth on pcp, mainly driven by an 83% growth in the Australian portfolio. The Company continues to offer superior net interest margin and net loan margin, demonstrating the quality of its portfolio and the benefits of its 100% direct-to-consumer business model.

Harmoney introduced Stellare’s® Libra™ 1.7 lending model in Australia in February 2021, following the introduction of which new customer onboarding increased significantly, while arrears rates remained stable at historically low levels , demonstrating Stellare®’s strength in identifying creditworthy customers via Harmoney’s consumer-direct data. This ability to systematically identify creditworthy customers, at scale, supported the net interest margin of 13.1% (+220 basis points on dbl) and the net loan margin of 9.3% (+210 points base on pcp) carried out this semester.


Commenting on the company’s 1HFY22 results, Harmoney CEO and Managing Director David Stevens said:

“The first half of FY22 demonstrated the successful execution of our Australian strategy, delivering strong results and positioning us well to exceed our previous market guidance as we demonstrate improvements across all key metrics. Our loan portfolio at the end of February 2022 now exceeds $600 million, which is driven by exceptional growth in our Australian business – a testament to our 100% direct-to-consumer model and the significant opportunity that exists for Harmoney to provide quality solution to new and existing customers.

“The Australian market opportunity is nine times greater than the New Zealand market and we are only at the beginning of our entry into this market. As our 100% consumer-facing Stellare® platform continues to adapt and learn in the Australian market, we are confident that we will continue to see strong growth in new customers and strong demand from the from our existing customers. Australian new customer creations represented over 50% of total new creations for the period and it is expected that, given the current trajectory, the overall Australian backlog is expected to overtake the New Zealand backlog next year. »

First half demonstrates continued acceleration and growth on key metrics

Harmoney had a profitable first half with a pro forma NPAT of $1.2 million and a pro forma cash NPAT of $0.8 million. These results are mainly due to a strong increase in net interest income thanks to a growing portfolio and a significant drop in financing costs.

Harmoney’s unparalleled automation continues to provide an attractive net lending margin, with personal risk-based interest rates for primary borrowers, low arrears and credit losses, and lower cost of funds. The Company continues to diversify its funding sources with funding from three of the Big 4 banks. This is expected to drive further cost efficiencies as Harmoney benefits from a lower cost of funds, economies of scale through automation and a growing loan portfolio. growth.

As expected, the company increased marketing expenses, which are fully expensed as incurred, to $10.7 million, due to Harmoney’s rapid rise in the market. Australian market. These costs are expected to decline as a percentage of originations over time as loans to existing customers become a larger share of Australian loans. Personnel costs also increased as Harmoney continued to expand its development capacity following its IPO in November 2020; however, 1HFY22 manpower levels are expected to be relatively stable in future periods.

Harmoney’s direct model and proprietary technology work together to create real cost savings. With its Stellare® end-to-end automation of the loan application and approval process, the company can significantly increase revenue without having to increase operating expenses or staff costs. Harmoney has a stable level of loan officers within the company who are able to serve the growing customer base. This creates highly scalable growth opportunities for Harmoney. Additionally, Stellare®’s direct processing offers other benefits, with the ability to temporarily moderate automated parameters to account for macro conditions.

Harmoney’s transition to warehouse financing remains on track with 83% of book warehouse funded as of 31 January 2022 and committed undrawn warehouse financing lines of NZ$304 million , including the $150 million facility announced on February 7, 2022.


• Group pro forma loan book now over $650m (30%+ growth from FY21)

• Pro forma group revenue of at least $92 million (growth of 16%+ from FY21)

• Net lending margin of at least 8.3% (growth of 150 basis points and more in FY21)

• Cash NPAT pro forma profit as of June 30, 2022

• Transition to warehouse financing expected to be approximately 90% complete by June 30, 2022 (83% as of January 31, 2022)

Commenting on the outlook, Mr Stevens said:

“We appreciate the continued support of our shareholders, customers and especially our employees during the period. We continued to execute on our strategy and deliver growing high margin receivables in Australia and New Zealand. We are focused on our three main growth areas, including continued expansion in Australia, improving conversion rates in Australia and New Zealand, and leveraging our deep data insights to drive innovation in new and improved product initiatives.

Webinar for investors at 9.30am AEDT / 11.30am NZST today, Monday 28 February 2022

CEO and Managing Director David Stevens and Chief Financial Officer Simon Ward will host a conference call and webcast for investors, including a Q&A session today at 9:30 a.m. AEDT / 11:30 a.m. NZST.

Participants are encouraged to register before the start of the call using:


Registered participants will receive their phone number upon registration.

This version has been authorized by the board of directors of Harmoney Corp Limited.


General Finance Advertising

Comments from our readers

no comments yet

Add your comment:

Related News:

Morning Report February 28, 2022
Morning Report February 24, 2022
Foley Wines Limited Half Year Report as at 31 December 2020
NZME annual results as of 31 December 2021
Spark New Zealand Limited H1 FY22 Results
Steel & Tube Announces Record Six-Month Revenue and Profit
Morning Report February 23, 2022
Heartland Announces Semi-Annual NPAT of $47.5 Million
Mercury Results reflect significant change over half a year
Morning Report February 22, 2022

Comments are closed.