Profit climbs for MTF
MTF Finance has recorded a five per cent increase in its annual profit after tax, after the total hit $8.4 million for the year ended September 30, 2022.
This was up from $8m a year earlier and was bolstered by record sales for the 2022 financial year of $607m, which was 10.9 per cent higher than in the previous reporting period.
Chris Lamers, chief executive officer, says the result shows its strategy to diversify into personal lending, reinvigorate the dealer channel, support franchise growth and develop new partnerships is paying off already.
Increased investment in the brand has also seen loan leads grow nine per cent and brand preference lift by 21 per cent.
“We will continue to invest in the business, taking a medium to long-term view on returns,” adds Lamers, pictured.
“We have increased the investment in growing the reach of our network of 50 locally owned and operated franchises. As well as vehicle dealers and partners through increased marketing, we are now rebuilding our technology stack to improve our customer experience and ability to scale and continue to launch new products.”
Other figures from MTF Finance’s annual report, which was released on November 23, include income growth rising 2.9 per cent to $97m and net interest income climbing 18.7 per cent to $23.2m.
Underlying profit after tax, which removes the volatility of fair value movements, was hit by the planned increased investment in marketing and technology and fell 11.3 per cent to $6.6m.
The MTF Finance board approved a final dividend of 1.85 cents per ordinary share for payment on December 7, 2022.
Total distribution relevant to the period will be 7.83 cents or $1.5m, compared with 9.80 cents per share and $1.9m for the 2021 financial year.
The company says while the country is facing a challenging and volatile economic climate, it believes the company is well positioned to continue to grow its market share.
“The MTF Finance board launched the new strategic direction 18 months ago, and the benefits are already flowing through the top line,” explains Lamers.
“We will see these flow through in profit and increased returns to originators over the medium term and set MTF Finance up for another strong 50 years.”
