Consumer finance company MoneyMe has got its business in good shape ahead of its merger with SocietyOne, reporting strong growth in originations, receivables and revenue in the December half-year.

The company reported a 286 per cent increase in originations to A$441 million, compared with the previous corresponding period, and a 252 per cent increase in receivables to $590 million. Revenue rose 101 per cent to $48 million.

However, operating expenses went up almost three-fold to $66.3 million and the company made a loss of $18.7 million. It said the loss reflected “upfront SocietyOne related expenses” and provisioning expenses driven by receivables growth.

The impairment expense grew from $5.8 million in the December half 2020 to $30.2 million in the latest half. The growth reflects the big increase in receivables, as well as $19.5 million of net customer receivables written off.

MoneyMe said that on a cash basis it made a profit of $10 million, compared with $4 million in the previous corresponding period. 

However, in the material it released yesterday it does not show what adjustments it made to get from its statutory loss to a cash profit.

MoneyMe has been operating since 2013, selling unsecured personal loans and a line of credit called Freestyle Virtual Credit Account

Earlier this month, its shareholders approved an issue of share to SocietyOne shareholders as consideration for acquisition of their business.

The deal is worth $132 million it will add another $392 million of receivables.