Financial performance and strategic investments

Finexia Financial Group Limited (ASX: $FNX) has reported a net profit after tax of $153,042 for the half-year ended 31 December 2023, a decrease from the previous corresponding period. The company's net profit before tax for the same period was $279,276. Finexia has declared a fully franked interim dividend of $0.5 cent per share with 49,402,702 shares on issue. The group's revenues from core operations increased to $7.5M, and the net assets decreased to $16.2M at 31 December 2023.

CEO's perspective on financial performance and strategic investments

As the CEO of Finexia Financial Group Limited, I'm pleased to report on the Group's continued growth and strategic investments in becoming a leading private credit specialist. This period to December 31, 2023 has been pivotal for us as we've focused on laying the groundwork necessary to capitalize on and scale our growing range of specialist private credit products and platforms. The group's commitment to strategic investments did impact our profit results, yet we've achieved a commendable 6.8% growth in topline revenue compared to the corresponding period. We have recorded a modest net profit after tax of $153,042. This is a significant decrease compared to last year, mainly driven by increased operating costs from the Group's strategic investments and a reduced net interest margin due to the use of more expensive wholesale capital.

Outlook and strategic priorities

The Group's near-term strategic priorities and initiatives encompass several key areas, including maximizing the potential of the Group's market-leading loan products within the Childcare Sector, engaging with wholesale funders for additional capital, strengthening and expanding the loan distribution network, leveraging technology as a strategic asset, and enhancing shareholder value. The Group's recent acquisition of Yield Report Pty Limited from Sequoia Financial Group Ltd demonstrates its commitment to strategic expansion. Despite the impact of strategic investments on net profit, the Group remains confident that these initiatives will yield sustained growth and value creation for stakeholders over the long term.