Beforepay Group achieves first full-year profit and secures Australian Credit Licence

This milestone achievement underscores Beforepay’s commitment to sustainable growth and ethical lending.

Beforepay Group Limited (ASX:B4P)

SYDNEY, NSW, AUSTRALIA, August 27, 2024 /EINPresswire.com/ -- Sydney, Australia – Beforepay Group Limited (ASX: B4P), a leading ethical-lending fintech, today announced its financial results for the fiscal year ending 30 June 2024, marking a significant milestone with the company’s first full-year profit. This achievement underscores Beforepay’s commitment to sustainable growth and ethical lending.

For the year, Beforepay reported a net profit before tax (NPBT) of $3.9 million and an EBITDA of $8.5 million. This milestone marks the first time the company has achieved a positive full-year NPBT and EBITDA, demonstrating the effectiveness of its strategic initiatives. The company’s financial stability is further highlighted by its cash position of $19.2 million and an improved equity position of $30.5 million as of June 2024.

Beforepay’s user base also grew significantly, reaching a record 240,254 active users by the end of FY24, with continued growth to 244,193 by 31 July 2024. This increase was driven by focused performance marketing efforts and additional marketing spend, which reignited new user acquisition in the company’s core products.

In addition to user growth, Beforepay achieved substantial improvements in its financial metrics. The net transaction margin expanded by 66% year-on-year, while net defaults improved to 1.4%, down from 2.1% in FY23. These results reflect strong credit performance and the success of Beforepay’s risk management strategies.

Looking forward, Beforepay is set to launch a new loan product in FY25, following the acquisition of an Australian Credit Licence by its wholly owned subsidiary, BPG Credit Pty Ltd. This new product will allow customers to access larger sums for extended periods, further diversifying the company’s offerings.

The company’s Carrington Labs division, which specialises in explainable AI-powered credit risk scoring and lending solutions, is also making significant progress internationally, with two non-binding Letters of Intent signed in Q4 FY24.

CEO Jamie Twiss commented, “This year’s results are a testament to our team’s dedication and the robustness of our business model. Securing the Australian Credit Licence enables us to expand our product suite and continue meeting the evolving needs of our customers.”

For more information, please contact:
Noeleene Yap, Beforepay Group
+61 489 995 082
mediaenquiries@beforepay.com.au

About Beforepay Group
Beforepay Group is an ethical-lending fintech founded in 2019 to create safe and affordable lending products.

Beforepay Group operates two business lines: Carrington Labs, which builds and deploys AI-powered loan-decisioning systems and high-efficiency lending platforms, and Beforepay, the Company’s direct-to-consumer business.

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.

The Beforepay app also includes free budgeting tools and spending insights.

For more information visit: www.beforepay.com.au

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 here. Nothing in this announcement constitutes a representation or warranty, expressed or implemented, or financial or other advice and it is not to be relied upon in substitution for the recipient’s own exercise of independent judgment regarding Beforepay Group. Before making an investment decision, the recipient should obtain advice as it considers necessary or appropriate.

To the maximum extent permitted by law, no member of the Beforepay Group accepts any liability for any loss whatsoever arising from the use of this announcement. 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 in this announcement is not recognised under the Australian Accounting Standards (‘AAS’) and is classified as ‘non-IFRS financial information’ under ASIC Regulatory Guide 230 ‘Disclosing non-IFRS financial information’. 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 AAS and therefore may not be comparable to similarly titled measures determined in accordance with AAS. Readers are cautioned to not place undue reliance on any non-IFRS financial information and ratios in this announcement. All dollar values are in Australian dollars ($) unless stated otherwise. All figures 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
+61 403 575 898
mediaenquiries@beforepay.com.au
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