A number of financial services companies updated the market on their financial positions yesterday, as the ASX continued to plunge. Among them were loss-making fintechs keen to reassure investors that they had sufficient funding to maintain their operations.
Openpay
Buy now pay later company Openpay, which listed on the ASX in November, reported that it was in a "strong" financial position, with a cash balance of A$45.7 million and a further $45 million of undrawn capacity.
The company has 561,000 active plans and 1959 merchant partners.
It had net cash outflow of $30.2 million during the December half. Receipts from customers rose from $44.5 million in the December half 2018 to $76.5 million in the latest half.
It said the cash outflow was driven by costs associated with volume growth and continued investment in the business.
It made a loss of $15.9 million in the December half.
Sezzle
Instalment payment company Sezzle, which was listed on the ASX in July last year, said it had US$35.2 million in cash and cash equivalents at the end of January.
It said it had capacity for growth, with only 20 per cent drawn on a US$100 million credit facility.
For the year to December, Sezzle lost $16.6 million and had net cash outflow from operating activities of $19.9 million, compared with $6.2 million the previous year.
The company said: "Increased cash usage versus the previous year was driven by higher operating losses and increased working capital."
FlexiGroup
Finance company FlexiGroup announced that it had secured an additional $75 million of committed wholesale funding from a major domestic bank, with the facility extended for a further two years.
The company said it already had $674 million in undrawn, committed wholesale funding facilities provided by a range of banks.
It also has $103 million of undrawn corporate debt facilities.
Challenger Ltd
Investment management company Challenger said it has a $400 million group banking facility, with $250 million drawn and held in cash.
It said: "While investment market volatility impacts the fair value of Challenger Life Company's assets and statutory earnings, it has no material impact on Life's normalised earnings. Funds management earnings are impacted by the amount of funds under management and associated performance fees."
Money3
Consumer finance company Money3 said it had drawn down a further $40 million under its existing debt facility to fund growth in loan originations.
The company made a profit of $17.7 million in the December half.