Trans-Tasman auto finance specialist Money3 has started to show the benefits of its recent acquisition program, with strong growth its loan book, revenue and profit in the year to June.

Money3’s buying spree started in 2019, when it acquired Go Car Finance in New Zealand.

In January this year, it announced a deal to acquire Automotive Financial Services, a funder of consumer and commercial vehicle purchases in the near-prime segment with a gross loan book worth $52 million.

A month later it acquired GMF Australia, the local subsidiary of General Motors Financial Co, increasing its automotive loan book by $23 million.

This time last year the company reported strong growth in the size of its loan book and revenue. But higher impairments, provisions and expenses held back earnings growth.

In the year to June 2021, the bottom line benefited as well. The company reported net profit of $39.1 million for 2020/21 – an increase of 63 per cent over the previous year.

Revenue rose 17 per cent to $145.1 million. Expenses came down, largely due to the allowance for impairment losses being cut from $14.4 million in 2019/20 to $878,000 in the year to June.

The loan book grew 39 per cent to $601 million.

Its business has been providing non-conforming finance for used vehicles. As a result of its acquisitions it has expanded its product offerings into commercial vehicle loans and entered the new vehicle finance market.

The company has also overhauled its funding, with the establishment of new warehouse facilities that have reduced funding costs. This included a $250 million facility with Credit Suisse.

Money3 has a total of$423 million in debt facilities and currently has $130 million of funding headroom.