Prospa full-year results

Prospa full-year results supported by record fourth-quarter originations; strong position to sustain rapid scale and growth

• FY21 loan originations were up 8.1% to A$483.7 million (FY20: A$447.5 million), with a strong rebound from COVID-19 in the second quarter, leading to a record quarter of originations in 4Q21 of A$183 million, an all-time record in the Company’s nine-year history.
• Prospa had 11,900+ active customers. With a growing loyal customer base, 54% of originations valued at A$262.4 million were generated from repeat customers, achieving a materially lower acquisition cost than the cost of attracting new customers.
• New Zealand originations were at A$78.2 million, significant growth of 77% compared to FY20.
• Originations driven up due to the increase in registered partners across New Zealand.
• With Prospa’s customer-centric approach, its net promoter score rose to 80+[1] over the 4Q21 (FY20: 77+) and it ranked as the #1 online lender to small business in both Australia and New Zealand through Trustpilot.

Prospa Group Limited (ASX: PGL) (“Prospa” or “Company”), Australia and New Zealand’s number one online lender to small businesses, is pleased to provide its full-year results for the 12 months ended 30 June 2021.

Over the period, Prospa demonstrated its resilience by weathering COVID-19 challenges, returning to or exceeding pre-COVID growth levels across key financial metrics.

Prospa witnessed small businesses struggle, but the entrepreneurial mind of a business owner enabled many to focus on recovery and growth. Over the past quarters, the Company observed small business owners take advantage of the economic recovery to evolve their business models, create new products, and adapt their cost structures.

The ability to meet small businesses’ needs helped Prospa achieve strong results, including a key milestone of more than A$2 billion in loan originations for nearly 34,000 small business customers since Prospa’s inception. The first billion in capital funding took six years, and the second billion took just two years.

With more than 11,900 active and satisfied customers using its purpose-built technology platform, Prospa continues to receive positive feedback reflected in its net promoter score to 80+ over the 4Q21, from 77+ in FY20.

Outlook and strategic priorities
 

Prospa recognises the strengths of the business and seeks to continue investing in the unique scalable platform that supports three distinct strategic pillars: technology, funding and distribution.

The Company has developed a robust long-term strategic plan to accelerate growth and enhance market differentiation. Utilising its extensive data and insights, over the next three years Prospa plans to scale its existing products as well as create new innovative digital solutions.

Prospa expects to provide a more comprehensive update on its growth strategy and will report on initial market testing later in the year.

Beau Bertoli, Co-Founder and Chief Revenue Officer, said:

“We are proud of the outstanding achievements over the period. Along with our partners, the Company has supported small business customers during an extremely challenging period, enabling them to operate and build resilience.

“We have witnessed many small business owners pick themselves up to focus on recovery and growth. With our partners, we were and remain well positioned to support the small business community with their demand for funding to recover and grow.

“Our achievements highlight our dedication to provide ongoing support to small business customers impacted by seasonal downturns or seeking to build resilience, while we invest in our long-term growth ambitions.”

Adrienne Begbie, Managing Director of Prospa NZ, said:

“Being able to support so many small businesses during such a trying year has been truly rewarding. New Zealand’s economic recovery from COVID-19 has been leading the way in many aspects and our small business sector has contributed significantly to that recovery. While our current lockdown is no doubt a difficult setback for many, we know Kiwi small business owners are resilient, and we will once again rally around them to show our support.

"Our broker partners have also been working tirelessly to champion our small businesses and collaborating with us to find solutions that fit their clients’ needs. We’re proud of the support we’ve been able to offer to not only help businesses recover, but also take hold of new opportunities and even grow and expand their operations during times of uncertainty. New Zealand's go hard and go early approach has served us before, and we trust it will again."

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