Goldfields Money says it has “plenty of scope” to increase its market share after reporting modest revenue and loan book growth for the first half of 2015-16.
The ASX-listed lender’s loan portfolio rose by 5.0 per cent to $145.8 million in the six months to 31 December 2015, with $13.8 million of new loans originated during this period.
Goldfields said in a statement that the overall quality of its lending portfolio remains stable, with loans in arrears of greater than 30 days increasing slightly from 0.95 per cent to 1 per cent over the six-month period.
“The provision for bad and doubtful debts increased by approximately $11,000 during the period. Loans in arrears at 31 December 2015 are well secured,” it said.
Meanwhile, Goldfields’ statutory net loss for the period was $84,982, which included a termination payment of $268,640 to former CEO David Holden.
The lender’s acting CEO for the reporting period, Michael Verkuylen, said that while the loss is disappointing, the result “would have been a profit of approximately $103,000”, excluding the impact of the termination payment.
“With the board rejuvenation complete and the addition of our newly-appointed CEO Simon Lyons, we are completely focused on ensuring we continue to grow our customer base and our lending portfolio,” he said.
“Like many Australian businesses, Goldfields Money’s core markets remain subdued. However, there is plenty of scope for us to increase our market share, and we are implementing initiatives to achieve this.
“Simon and the executive team will be providing further information regarding a renewed strategy in the coming months.”
[Related: Goldfields Money appoints new CEO]