Consumer lender MoneyMe has failed to capitalise on its acquisition of SocietyOne last year, with much of the increase in its loan book running off as it grappled with a blowout in bad debts and a protracted refinancing of the business. MoneyMe completed its acquisition of SocietyOne in March last year, adding A$400 million to its loan book.  At the end of June 2022, the company had customer receivables of $1.3 billion but by the end of the 2022/23 financial year receivables had fallen to $1.1 billion. The company said it moderated originations over the past year to focus on profitability at a time when interest rates were rising sharply and the economic outlook was uncertain. Originations fell from $1.1 billion in 2021/22 to $446 million in the year to June. It was also dealing with the impact of its poor credit performance. Gross customer receivables written off rose from $51 million in 2021/22 to $100.1 million in in the year to June. According to its accounts, “the increase in gross customer receivables written off reflects the increases in loan originations in 2020/21 and 2021/22”.  But it was not just the increase in the size of the book: net losses as a proportion of receivables rose from 4 per cent in 2021/22 to 6 per cent in the year to June. The company’s pursuit of growth was helped along by some loose underwriting. Over the past year, MoneyMe has shifted its focus to higher quality borrowers and secured car finance. The debt refinancing took months to resolve and was a distraction for the business. Last December, MoneyMe revised its syndicated facility agreement with Pacific Equity Partners, with a commitment to pay down $25 million, plus accrued interest, fees and other amounts, in order to bring the balance of the debt facilities outstanding under the facility agreement to $50 million. Its shares were suspended for a period as the refinancing talks dragged on. At the end of March, it launched a $37 million share placement, after securing the commitment of long-standing investors, including Somers Ltd and Perennial Value. Most of the funds raised were used to pay down the PEP facility. One positive for the company was that its decision to moderate originations allowed it to make a significant reduction in sales and marketing costs. This, along with a reduction in its expected credit loss provision to reflect the reduction in receivables, helped the company turn a profit. MoneyMe reported a net profit of $12.3 million for the year, a turnaround from a loss of $50.4 million in 2021/22. Net revenue grew 65 per cent to $232.9 million. The company said it held its margin steady, passing on increases in funding costs.