Struggling non-bank lender Wisr Limited says it will deliberately “slow its growth aspirations” over the next 12 months in a bid to make its operations profitable.
The company, which markets personal finance, car loans and debt consolidation services to borrowers, posted a full year net loss of A$19.9 million.
The loss was $2.3 million worse than the 2021 result.
To accelerate its pathway to profit, Wisr has imposed a freeze on bringing new credit products to market and has reduced staff to bring its cost base under control.
Chief executive Anthony Nantes said the company was also shelving plans to build a presence in Europe by curtailing further investment in a loan origination platform known as Arbor.
“We are a growth company and will be a growth company for the next decade or more as we seek to materially increase our share of the circa $150 billion consumer finance market in Australia,” Nantes said.
“However, in the short term, we have prioritised achieving profitability within twelve months over accelerating growth, as we will continue to demonstrate the strong and safe fiscal management we are known for.
“After achieving two positive operating cash-flow quarters in FY22 before the change in macroeconomic conditions, we have been well on the way to profitability.” Wisr grew its loan book at a breakneck rate in the 12 months to the end of 2022, more than doubling its loan receivables held on balance sheet to $764 million.
Combined with product repricings, the rapid expansion contributed to a 118 per cent increase in revenue to $59 million.
Nantes described the revenue growth as a validation of the company’s business model.
“It’s an incredible validation of our business model, prudent treasury and underwriting capability and the capability of the widely recognised high-performing Wisr Team,” he said.
“By taking prudent steps such as maintaining a strong cash-balance sheet, implementing rate and pricing levers, tightening credit in-line with risk appetite and significant material reductions in operating costs, the company is in the strongest position to navigate market conditions.”
Wisr’s share price traded in the green for most of Tuesday and closed up 7 per cent to 7.7 cents.