Annual Report
2025
HARMONEY ANNUAL REPORT FY25
2
Contents
Highlights.....................................................................................................................................................3
Board of Directors.....................................................................................................................................5
From the Chair............................................................................................................................................7
From the CEO..............................................................................................................................................8
Review of Operations...............................................................................................................................11
Sustainability Report..............................................................................................................................19
Directors’ Report.....................................................................................................................................30
Financial Report.......................................................................................................................................31
Shareholder Information........................................................................................................................ 71
Corporate Information............................................................................................................................73
Directory.....................................................................................................................................................77
HARMONEY ANNUAL REPORT FY25
3
Performance
$829m
9% ($758m, FY24)
Group loan book
Group loan book up 9%
$132m
8% ($123m, FY24)
Group revenue
Revenue up 8% to $132m
$5.5m
($13.2m loss, FY24)
Statutory profit
Statutory NPAT increase of $18.7m
$5.7m
742% ($0.7m, FY24)
Cash NPAT
Exceeding upgraded market guidance of
$5.5m
19%
130bps improvement, (20%, FY24)
Cost to income ratio
Stellare® 2.0 platform automation driving
further improvements in cost to income ratio
0.74%
31bps, (0.43%, FY24)
Group 90+ day arrears
Group arrears of 0.74%, remain
significantly lower than personal loan market
average of 1.59%1
$23m
10%, ($21m, FY24)
Unrestricted cash
Unrestricted cash of $23m and total
warehouse credit capacity of $1,025m
provide funding capacity for growth
1. Equifax Australian Consumer Credit Insights Report 2025 Q2, Personal Loan series.
HMY 2025
Highlights
HARMONEY ANNUAL REPORT FY25
4
Stellare® 2.0
implemented
Stellare® 2.0 now live in both
countries, with New Zealand
implementation completed 4Q25,
driving New Zealand June 2025
new customer originations >50%
on pcp.
150% and growing
Customer loyalty with early
customers returning for a further
150% borrowing, so far
4.7/5
Customers rate us!
Google + Shopper Approved rating
4.7/5 from nearly 60,000 reviews
Customer Net Promoter Score 85
Award winning
WeMoney - Winner of Best for
1111111111111 Personal Loans 2025
MoneyHub - Favourite Online 1
1 Lender 2025
Automation 100%
Automated credit decisioning
achieved for all customers across
both countries with launch of
Stellare® 2.0 in New Zealand
90-second quote
Launched ability for customers to
receive a quote in 90-seconds
88%
Employees rate us!
Employee engagement in top 10%
Australia/New Zealand employers
ClearScore
partnership
First in Australia to offer pre-
qualified quotes on ClearScore, via
API integration partnership.
Achievements
HARMONEY ANNUAL REPORT FY25
5
Paul Lahiff
Independent Chairman
Monique Cairns
Independent Director
Paul Lahiff (Bachelor of Agricultural Science) is a highly
seasoned executive with 40 years of experience in financial
services. Paul is currently the Chair of NESS Super. Paul
was previously the Chair of Australian neo-bank UBank, a
director of payments company Sezzle Inc, and the CEO and
Managing Director of Mortgage Choice, during which time he
led its successful listing on the Australian Stock Exchange.
He was also a former Managing Director at Permanent
Trustee, and before that at the Heritage Building Society. Paul
brings extensive capital markets, regulatory and governance
experience from his Chairmanships at Cuscal Limited,
New Payments Platform Australia, Australian Retail Credit
Association, and RFi Group.
Paul is a member of Harmoney’s Audit and Risk Committee and
Nomination and Remuneration Committee.
Monique Cairns (Bachelor of Business) has over 20 years
of experience in strategy, communications, marketing and
sales, across financial services and other sectors. She is a
professional director with her own consultancy business,
Caribou, where she provides strategy development and CEO
performance and remuneration reviews. Monique is currently
the Chair of 30 Seconds Group, the Deputy Chair of New
Zealand Home Loans, a director of Ingenium, a Board trustee of
The New Zealand Portrait Gallery Te Pūkenga Whakaata, and
Chair of the Art Committee at the Northern Club. Monique’s
executive background includes serving as the Head of Retail
Sales Development and Customer Experience at the Bank of
New Zealand, and the Chief Marketing Officer at GE Capital
NZ. Monique was also a former director of DEC International,
Manukau Institute of Technology, Unitec Institute of Technology,
Lotto NZ, and the SPCA. Monique is a member of the Australian
Institute of Company Directors and the New Zealand Institute of
Directors.
Monique chairs Harmoney’s Nomination and Remuneration
Committee and is a member of Harmoney’s Audit and Risk
Committee.
Board of Directors
HARMONEY ANNUAL REPORT FY25
6
John Quirk
Independent Director
John Quirk (Bachelor of Science) has over 40 years of
experience in the technology sector with international and
multinational companies, as well as his own strategic investment
and corporate advisory business. John is currently the Chair
of Portainer.io and Aeroqual, and a director of Television New
Zealand. John was previously the Chair of Kordia Group (a
SOE), ClearPoint Group, Farm IQ Systems Limited, FrameCAD
Group, WhereScape Software, Cumulo9, Axon Computers, and
SMX. He has held key leadership roles, including the position of
Chief Executive Officer (Asia Pacific) of MI Services Group, an
international management consulting and information systems
company. John is a Chartered Member of the Institute of
Directors.
John chairs Harmoney’s Audit and Risk Committee and is a
member of the Nomination and Remuneration Committee.
Neil Roberts
Founder & Non-Executive
Director
Neil Roberts founded Harmoney, and was CEO until 2019,
driving the capital path, and building culture, systems and
processes that are intrinsic to Harmoney’s success. Prior to
that Neil was Head of Sales and Business Development at
FlexiGroup, leading a team of 80 with annual sales of $200
million, driving a $30 million profit. Neil founded the Direct
Division of a New Zealand retail company, PRG Group, that sold
personal loans to consumers and raised retail debentures to
fund loans. Launched in 2001, PRF Direct achieved $3.2b in
personal loan applications and $1.2b in written personal loan
volume over five years. Ultimately heading the business, Neil
was responsible for over 400 staff and a balance sheet of
$750m in assets, prior to being sold to GE Money in 2006.
David Stevens
Chief Executive Officer &
Managing Director
David Stevens is a highly experienced public company CEO
specialising in consumer and commercial finance in Australia
and New Zealand. Before commencing with Harmoney as
CEO in 2019, David had most recently led a start-up consumer
finance company, to ultimately securing a major equity stake
in the business by a large Australian Bank in 2018. Prior to this,
David served as CEO and CFO of Humm (formerly “FlexiGroup”)
(ASX: “FXL” now “HUM”). In David’s nine years with FlexiGroup,
he led a team of over 1,000 employees in the strategic growth
of the business, through organic growth and M&A, from what
was a small company when he started, to becoming CEO of an
ASX200-listed business. David also led the $300m+ acquisition
of Fisher & Paykel Finance and spent considerable time in
New Zealand in the course of his work in the local side of the
business.
HARMONEY ANNUAL REPORT FY25
7
From the Chair
Paul Lahiff
Dear Shareholders,
I am pleased to introduce another highly successful year for Harmoney, defined by record
profitability and the successful delivery of our core technology strategy.
Harmoney is reporting a record Cash Net Profit After Tax of $5.7 million, a 742% increase over the
prior year, attributable in part to the enhanced capabilities of our new proprietary lending platform,
Stellare® 2.0. Launched in Australia last year, Stellare® 2.0 is now fully implemented across both
Australia and New Zealand.
Completing this project was a significant achievement for our team, involving the full New Zealand
platform launch, the migration of our legacy loan book in both countries, and the decommissioning
of our legacy system. Further incorporating machine learning and AI technology, Stellare® 2.0
delivers a faster, simpler experience for our customers. More importantly, it gives Harmoney an agile
and scalable foundation to develop and deliver new products, driving future growth.
Our focus on delivery is supported by an unwavering commitment to strong corporate governance.
This year, we engaged independent advisers to conduct an evaluation, reviewing our board and
committee performance. The review confirmed the quality of our existing frameworks and provided
practical recommendations for continuous improvement. Our adherence to the ASX Corporate
Governance Council's Principles and Recommendations remains a cornerstone of our operations.
This year we have also introduced a new AI Governance and Controls policy to guide our ethical
use of this emerging technology and ensure our ongoing commitment to responsible innovation.
Last month our founder Neil Roberts transitioned to a non-executive director role, having served
as CEO until 2019 and then as Chief Strategy Officer until June 2025. I would like to take this
opportunity to acknowledge Neil’s immense contribution from the inception of the business.
His vision, passion and drive have been integral to Harmoney’s success and as a Board, we are
fortunate that we will continue to benefit from his deep experience and guidance.
Finally, it is pleasing to note that the market is also recognising our progress. A number of new
active investment funds joined our share register during the second half of the year, replacing early
series investors. Post-IPO investors now represent 41% of our register, up from 32% at the half-
year, reflecting growing confidence from the investment community in Harmoney’s strategy and our
ability to deliver.
On behalf of the Board, I want to extend my sincere thanks to our CEO David Stevens and the
entire Harmoney team for their exceptional work this year. My thanks also go to my fellow directors
for their guidance, and to you, our shareholders, for your ongoing trust and support.
Sincerely,
Paul Lahiff,
Chair
HARMONEY ANNUAL REPORT FY25
8
From the CEO
David Stevens
Record profitability and return on equity
It is with great satisfaction that Harmoney has this year delivered a record Cash Net Profit
After Tax (Cash NPAT) of $5.7m and fourth quarter Return on Equity of 24%, exceeding our
upgraded guidance and underpinning our Statutory Net Profit of $5.5m.
This record result is driven by gains across all key fundamentals of the business with strong
customer and loan book growth, improving lending margins, reducing credit losses and
disciplined cost management.
Loan originations grew by 22% with Australia leading the way with 40% new customer
growth, benefiting from a full year of our new proprietary lending platform, Stellare® 2.0. In
New Zealand Stellare® 2.0’s rollout was completed in 4Q25, generating an immediate impact
with June 2025 new customer originations over 50% higher than June 2024. This increase in
originations drove a 9% increase in the total group loan book for the year.
Our net interest margin widened back out to 9.3% from 8.8% last year as earlier lower yielding
loans made up a smaller proportion of the loan book. Funding costs increased by 10bps in
FY25 to 7.8%, up from 7.7% in FY24. As expected, credit losses reduced this year following a
temporary increase last year, and at 3.7% are back towards our target range. The combination
of increased net interest margin and lower credit losses resulted in a significant uplift in our
risk adjusted income to 5.7%, up from 4.8% last year.
A key feature of our business model is the high levels of automation provided by our Stellare®
2.0 platform, which provides significant operational leverage, enabling our loan book and
revenue to grow faster than our operating costs. This has continued this year with our cost-to-
income ratio now down to 19%, from 20% last year.
While this year’s record result is a satisfying milestone, what is even more exciting is how well
positioned Harmoney now is to build on this result in the coming year, with plenty of capital for
growth from our established “big-4” Australian bank warehouse facilities, deep cash reserves
and positive cash flows from operations, all now complimented by our fully implemented next-
generation Stellare® 2.0 platform delivering growing originations in both Australia and New
Zealand.
Accelerated product innovation
A key strategic driver for our investment in developing Stellare® 2.0 over the past few years
has been to provide Harmoney with a modern, agile platform to accelerate our product
innovation. With rollout and migration now complete, we look forward to bringing new features
and products to market in FY26 to further accelerate loan book growth.
One of the first will be our re-vamped secured car loan product leveraging Stellare® 2.0’s
“money in seconds” capabilities to provide customers with the flexibility to become a cash
buyer, shopping with a competitive pre-approved secured credit line, not dependent on dealer
finance options.
HARMONEY ANNUAL REPORT FY25
9
We will also look to introduce more flexible features to our loan products to better serve our
customer's evolving lives, plus we are progressively introducing more artificial intelligence
capabilities to better assist customers in real-time.
Guidance upgraded
The operating leverage inherent in our highly automated online lending platform, which enables
us to continue to scale our loan book without scaling operating costs, amplified by finishing
the year with strong fundamentals, as evidenced by our 24% 4Q25 Cash Return on Equity,
have given us the confidence to upgrade our FY26 Cash NPAT guidance by 20% to $12m,
representing a 111% increase on this year’s Cash NPAT of $5.7m.
David Stevens,
CEO and Managing Director
HARMONEY ANNUAL REPORT FY25
10
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HARMONEY ANNUAL REPORT FY25
11
Review of
Operations
HARMONEY ANNUAL REPORT FY25
12
Financial performance
The table below presents the financial results for the current year compared to the previous year. The table includes Cash Net
Profit After Tax (Cash NPAT), which is the Group’s preferred measure of underlying financial performance, but is a non-GAAP
financial measure and therefore may not be comparable to information presented by other entities. The table below also
shows the reconciliation of Cash NPAT to GAAP Statutory Net Profit After Tax which is comparable to information presented
by other entities.
For the year ended 30 June 2025, the Group delivered a record Cash NPAT of $5.7m (FY24: $0.7m), a 742% increase on the
prior year. That record Cash NPAT also underpinned a statutory profit of $5.5m (FY24: -$13.2m), with non-cash adjustments
having a largely neutral impact this year.
Loan book growth and a higher average loan portfolio interest rate together lifted income by 8% to $132.2m (FY24: $122.5m),
while risk adjusted income, being net income after funding costs and incurred credit losses, increased by 23% to $44.4m
(FY24: $36.0m), as interest income grew at a faster pace than interest expense and incurred credit losses fell.
Customer acquisition expenses increased by 29% to $13.7m (FY24: $10.6m), supporting new customer origination growth of
26% to $245.6m (FY24: $195.5m), with accelerated acquisition investment, particularly in the second half of the year, to take
advantage of improved customers conversion rates resulting from having the new Stellare® 2.0 platform operating in both
Australia and New Zealand.
Cash operating expenses remained stable, up only 1% (less than inflation) to $25.1m (FY24: 24.7m) and consequently, the cost
to income ratio continued to improve, now down to 18.9% (FY24: 20.2%), further demonstrating the operating leverage that
Harmoney is able to achieve from its highly automated lending model, enabling it to grow its loan portfolios without similar
growth in operating expenses.
Year ended
Year ended
Change
Change %
30 June 2025
30 June 2024
$'000
$'000
$'000
Interest income
131,828
121,768
10,060
8%
Other income
419
773
(354)
(46%)
Total income
132,247
122,541
9,706
8%
Interest expense
58,997
55,848
3,149
6%
Incurred credit losses
28,843
30,699
(1,856)
(6%)
Risk adjusted income
44,407
35,994
8,413
23%
Customer acquisition expenses
13,678
10,592
3,086
29%
Net operating income
30,729
25,402
5,327
21%
Personnel expenses
11,610
11,025
585
5%
Customer servicing expenses
5,967
5,918
49
1%
Technology expenses
4,936
4,954
(18)
(0%)
General and administrative expenses
2,539
2,831
(292)
(10%)
Cash operating expenses
25,052
24,728
324
1%
Cash tax expense
-
-
-
-
Cash NPAT
5,677
674
5,003
742%
Non-cash adjustments
Movement in expected credit loss provision
(16)
202
(218)
N/A
Share-based payments expenses
(724)
(1,488)
764
51%
Depreciation and amortisation expenses
(1,629)
(12,582)
10,953
87%
Movement in deferred tax assets
2,210
-
2,210
-
Statutory profit / (loss) after income tax
5,518
(13,194)
18,712
N/A
HARMONEY ANNUAL REPORT FY25
13
The combination of growing risk adjusted income while, maintaining stable operating costs, more than offset the increased
investment in new customer acquisition, to deliver this year’s 742% increase in Cash NPAT to $5.7m (FY24: $0.7m).
Non-cash adjustments added net expenses of $0.2m (FY24: $13.9m), with Harmoney’s strong operating performance
enabling the recognition of $2.2m of unutilised tax losses as additional deferred tax assets, largely offsetting the regular non-
cash expense items: movement in expected credit loss provision, share-based payments and depreciation and amortisation.
Depreciation and amortisation reduced by $11.0m to $1.6m (FY24: $12.6m) following the prior year one-off write down of
Harmoney’s legacy Stellare® 1.0 platform. Including the non-cash adjustments, statutory profit for the year was $5.5m (FY24:
-$13.2m), an increase of $18.7m.
Loan originations
Group loan originations for the year grew by $71.6m to $398.8m (FY24: $327.2m). This 22% increase was led by Australian
new customer growth of $54m, benefiting from a full year of the Stellare® 2.0 platform. Australian existing customer
originations grew by $18.1m which is expected to accelerate in following years as existing customer origination growth
naturally lags new customer growth. New Zealand loan originations remained stable at $136.2m (FY24: $136.7m) with growth
efforts focused on the Stellare® 2.0 enabled Australian market for most of the year. The New Zealand rollout of Stellare®
2.0 was completed in 4Q25 resulting in June 2025 delivering a more than 50% increase in new customer originations in that
market compared to June 2024.
Year ended
Year ended
Change
Change %
30 June 2025
30 June 2024
Total originations ($'000)
398,845
327,209
71,636
22%
New customer originations ($'000)
245,610
195,509
50,101
26%
Existing customer originations ($'000)
153,235
131,700
21,535
16%
Number of originations
26,280
20,166
6,114
30%
Average value of new customer originations ($)
17,165
20,268
(3,103)
(15%)
Average value of existing customer incremental originations ($)
12,801
12,519
282
2%
$75M
$57M
$78M
$75M
$61M
$134M
$58M
$188M
-
$50M
$100M
$150M
$200M
$250M
$300M
NZ
AU
Loan origination by geography
Existing customer originations
New customer originations
FY24 FY25 FY24 FY25
HARMONEY ANNUAL REPORT FY25
14
Portfolio
Strong origination growth in the Australian market grew the group loan portfolio by $70.6m to $828.7m (FY24: $758.1m), up
9% on the prior year. The Australian loan portfolio grew by 19% to $489.3m (FY24: $411.2m). The New Zealand loan portfolio
contracted by 4% in New Zealand dollars to NZ$366.4m (FY24: $379.7m), however, this trend is expected to reverse in FY26
following the 4Q25 completion of New Zealand’s Stellare® 2.0 rollout, and the resulting benefits already being felt.
The Australian portfolio has now grown to 59% of the total portfolio (FY24: 54%).
Risk adjusted income
Risk Adjusted Income (RAI) is calculated by deducting incurred credit losses from Net Interest Income (NII), which is income
less funding costs. Both RAI and NII are expressed in the table above as a percentage of the average loan book.
Year ended
Year ended
Change
Change %
30 June 2025
30 June 2024
Loan book (period end) ($'000)
828,692
758,129
70,563
9%
Loan book (average) ($'000) - Group
784,630
754,171
30,459
4%
Loan book (average) ($'000) - Australia
445,661
392,051
53,610
14%
Loan book (average) ($'000) - New Zealand
338,969
362,120
(23,151)
(6%)
$347M
$339M
$411M
$489M
-
$100M
$200M
$300M
$400M
$500M
$600M
$700M
$800M
$900M
FY24
FY25
Portfolio by geography
New Zealand
Australia
Year ended
Year ended
Change
Change %
30 June 2025
30 June 2024
Average interest rate (%)
16.9%
16.2%
70bps
N/A
Funding debt (period end) ($'000)
824,267
739,546
84,721
11%
Funding debt (average) ($'000)
758,756
725,802
32,954
5%
Average funding rate (%)
7.8%
7.7%
10bps
N/A
Net interest income (%)
9.3%
8.8%
50bps
N/A
Incurred credit loss ($'000)
28,843
30,699
(1,856)
(6%)
Incurred credit loss to average gross loans (%)
3.7%
4.1%
(40bps)
N/A
Risk adjusted income (%)
5.7%
4.8%
90bps
N/A
FY24 FY25
HARMONEY ANNUAL REPORT FY25
15
RAI increased by $8.4m to $44.4m (FY24: $36.0m), driven by average loan portfolio growth combined with a 50bps
improvement in NII% to 9.3% (FY24: 8.8%) and a 40bps improvement in incurred credit losses, now down to 3.7% (FY24:
4.1%).
Income grew by 8% to $132.2m (FY24: $122.5m) driven by growth in the average loan portfolio size and an increase in the
average loan portfolio interest rate to 16.9% (FY24: 16.2%), as loans originated higher in the interest rate cycle make up a
larger portion of the portfolio, and earlier loans originated at lower rates have amortised down.
Interest expense increased by 6% to $59.0m (FY24: $55.8m), in line with the loan portfolio growth. The higher 11% growth
in the period end funding debt is reflective of improved warehouse advance rates achieved through the year, with most
facilities extended with advance rate improvements, providing better leverage to grow the portfolio further from available cash
reserves. Extended facilities also provided fixed margin reductions, which will benefit funding costs through FY26.
Net interest income (NII) has increased $6.5m to $73.2m (FY24: $66.7m), as a percentage of average loan book this has
increased 50bps to 9.3% (FY24: 8.8%), with the average portfolio interest rate increasing and the average funding rate
remaining largely stable.
Incurred credit losses, being loans written off during the period, decreased $1.9m to $28.8m (FY24: $30.7m), with the incurred
credit loss to average gross loans percentage decreasing to 3.7%, back down towards target levels, from 4.1% in the prior
year which represented a peak driven by the lagging impact of an earlier Australian credit scorecard, replaced several years
before.
Credit provisioning
The expected credit loss (ECL) provision represents Harmoney’s modelled expectation of future period credit losses to occur
from the current portfolio. The provision does not account for future period interest income that Harmoney also expects
to derive from the current portfolio. Movements in the provision are driven by changes in the size of the loan portfolio and
changes in Harmoney’s expectation of the level of future period loss to occur from within that portfolio. As movements in
the provision do not impact cash, they are excluded from the calculation of Cash NPAT, which recognises only credit losses
actually incurred during the period.
Harmoney’s ECL provision increased by $0.2m to $36.8m (FY24: $36.6m), with a 40bps reduction in the overall provision rate
from 4.8% at 30 June 2024 to 4.4% largely offsetting additional provisioning driven by loan portfolio growth. The reduction in
the provision rate to 4.4% reflects the decrease in expectation of future losses given the decrease experienced in incurred
credit loss, while also allowing additional provision to accommodate future uncertainty.
Year ended
Year ended
Change
Change %
30 June 2025
30 June 2024
Movement in expected credit loss (ECL)
provision ($'000)
16
(202)
218
N/A
Provision rate (%)
4.4%
4.8%
(40bps)
N/A
HARMONEY ANNUAL REPORT FY25
16
Customer acquisition metrics
Customer acquisition expenses increased by $3.1m to $13.7m (FY24: $10.6m) with additional investment in new customer
acquisition, particularly in 2H25, to leverage the improved origination performance delivered by Stellare® 2.0. The full benefit
of increasing new customer originations plays out over future years with a key feature of Harmoney’s consumer-direct model
being that existing customers return for subsequent loans, and those originations have near zero cost due to that existing
direct relationship.
The increased investment in 2H25 temporarily lifted the customer acquisition to origination ratio in 2H25 (shown in the chart
below) and increased the full year ratio to 3.4% (FY24: 3.2%). This ratio is expected to return to its long term downward
trend, as near zero cost originations to existing customers increase in future periods, following this year’s lift in new customer
originations.
The increase in the customer acquisition expense to income ratio to 10.3% (FY24: 8.6%) is also driven by the elevated
acquisition investment in 2H25, due to the lag between the origination expenditure, which is recognised when incurred, and
the interest income from the resulting originations, which is recognised over the life of the loan. When a loan is originated late
in the year, little interest income is recognised for that loan in its year of origination.
Customer acquisition expenses to originations ratio
Cost to income metrics
1. To align Cost to income ratio costs with Cash NPAT, and with peer group ratios, non-cash share based payments and depreciation and amortisation costs
are now excluded. Cost to income for FY25 including those costs is 21%, down from 24% pcp. FY24 excludes one-off impairment loss on internally developed
software.
Year ended
Year ended
Change
Change %
30 June 2025
30 June 2024
Customer acquisition expenses to origination ratio
3.4%
3.2%
20bps
N/A
Customer acquisition expenses to income ratio
10.3%
8.6%
170bps
N/A
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
1H24
2H24
1H25
2H25
Year ended
Year ended
Change
Change %
30 June 2025
30 June 2024
Cost to income ratio 1
18.9%
20.2%
(130bps)
N/A
HARMONEY ANNUAL REPORT FY25
17
Harmoney achieved a cost to income ratio of 18.9%, a 130bps improvement from the prior year (FY24: 20.2%). The ratio
includes all cash operating costs below net operating income (personnel, customer servicing, technology, and administrative
expenses). Non-cash items, share based payment, depreciation & amortisation and movement in deferred tax asset expenses
are excluded.
The continuing improvement is a reflection of the high levels of automation in Harmoney’s Stellare® 2.0 platform, enabling
Harmoney to continue to grow its loan book and revenue significantly faster than operating costs.
Cash operating expenses increased by only 1% to $25.1m (FY24: $24.7m), much lower than inflation levels in Australia and
New Zealand.
Financial position
Cash and cash equivalents of $52.6m consists of unrestricted cash of $22.8m (FY24: $20.6m), and restricted cash of $29.8m
(FY24: $17.1m); the latter may only be used for funding finance receivables and other purposes defined in the relevant trust
documents.
Unrestricted cash increased by $2.2m, being the surplus from $35.0m of cash generated from operating activities after
funding $27.5m invested in loan portfolio growth, $4.7m in Stellare® 2.0 development and $0.6m spent on lease payments.
Net assets have decreased $2.0m to $34.5m (FY24: $36.5m) driven by a $9.3m reduction in the value of derivative financial
instruments as market interest rates have fallen and a $2.3m increase in other liabilities, partially offset by a $5.0m increase
in deferred tax assets relating to derivatives and unutilised tax losses plus a $3.8m increase in the net book value of Stellare®
2.0.
The fair value of the derivatives represents the difference between the fixed rate of the interest rate swaps and the market
rate as at year end. The actual impact on profit and loss will be determined by the market rates on monthly settlement dates
over the next 6 years.
30 June 2025
30 June 2024
Change
Change %
$'000
$'000
$'000
Assets
Cash and cash equivalents
52,617
37,744
14,873
39%
Finance receivables
832,187
761,471
70,716
9%
Expected credit loss provision
(36,812)
(36,646)
(166)
(0%)
Derivative financial instruments
-
525
(525)
N/A
Deferred tax assets
15,600
10,633
4,967
47%
Intangible assets
8,323
4,491
3,832
85%
Other assets
5,933
5,897
36
1%
Total assets
877,848
784,115
93,733
12%
Liabilities
Derivative financial instruments
8,733
-
8,733
N/A
Borrowings - Receivables funding
802,000
717,796
84,204
12%
Borrowings - Corporate debt facility
22,267
21,750
517
2%
Other liabilities
10,365
8,111
2,254
28%
Total liabilities
843,365
747,657
95,708
13%
Net assets
34,483
36,458
(1,975)
(5%)
HARMONEY ANNUAL REPORT FY25
18
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HARMONEY ANNUAL REPORT FY25
19
Sustainability
Report
HARMONEY ANNUAL REPORT FY25
20
Our purpose is to help and
inspire people to start now
on their dreams or start fresh
through financial products that
are simple, smart and secure.
By leveraging technology, data-driven insights, and responsible lending, we connect
people with the right financial services at the right moment—promoting financial
well-being and supporting inclusive, sustainable economic growth.
We're committed to creating a positive impact—not just for our customers and
stakeholders, but also for our communities and the planet. Our Sustainability
Report explores the key risks and opportunities we face, and highlights our ongoing
progress in areas critical to our long-term success and responsibility.
HARMONEY ANNUAL REPORT FY25
21
Environment
As climate change continues to affect communities through more frequent and severe weather events, the urgency to
address climate-related challenges is growing. Harmoney acknowledges the important role businesses play in supporting the
transition to a low-carbon economy.
As a 100% online consumer-direct personal lender, Harmoney is proud that our operations have a minimal direct impact on
the environment.
Climate strategy
This year Harmoney maintained its commitment to achieving net zero emissions and offsetting any residual emissions. We
continue to monitor climate-related risks and opportunities and are working on establishing further reduction targets to
assess our performance and progress. By consistently measuring our impact, we remain committed to our contribution to
sustainability.
Carbon footprint
We are proud to maintain Zero Carbon certification from Ekos Kamahi
Limited NZ for three consecutive years, and have offset our residual
emissions for the period. To meet our commitment to offsetting residual
emissions, we proudly support the Kānuka Hill Native Regeneration
Project. Located in Golden Bay, this 96-hectare initiative diligently
protects and enhances naturally regenerating indigenous forest, delivering significant benefits in carbon sequestration,
biodiversity, water quality, and climate resilience. Ekos conducted a comprehensive carbon footprint measurement of our
Scope 1, 2 and 3 greenhouse gas (GHG) emissions which are represented in our Emissions Inventory Report below.
Emissions Inventory Report
• The emissions inventory report disclosed above has been reported using the location-based methodology.
• Emissions can be calculated using a market-based or a location-based methodology. In Harmoney’s case our emissions are higher under the location-based
methodology disclosed above, which is what we have offset.
Emissions breakdown
FY25 (tCO2e)
FY24 (tCO2e)
Change %
Total Scope 1 emissions
-
-
-
Purchased electricity
3.11
2.70
15%
Total Scope 2 emissions
3.11
2.70
15%
Air travel
21.55
10.87
98%
Cloud computing services
19.02
14.53
31%
Other scope 3 emissions
7.27
4.07
79%
Total Scope 3 emissions
47.84
29.47
62%
Total Scope 1, 2 and 3 emissions
50.95
32.17
58%
HARMONEY ANNUAL REPORT FY25
22
Harmoney continues to demonstrate strong environmental stewardship by maintaining zero direct (scope 1) emissions.
Our proactive transition to a 100% renewable and climate-positive electricity provider in the NZ office from January
2023 has been highly effective, ensuring our scope 2 emissions remain near zero as a result of consistently low
purchased electricity emissions.
In FY25, our total GHG emissions measured 50.95 tCO2e, representing an increase from FY24's 32.17 tCO2e. This rise
was primarily driven by an increase in indirect (scope 3) emissions, largely from an uplift in air travel. While our cloud
computing services emissions also increased by 31%, we are proactively working towards future reductions in this
category by transitioning to a supplier with more ambitious emission reduction targets.
While we experienced an increase in absolute emissions, our carbon intensity metrics highlight our commitment to
maintaining a very low environmental impact. Our carbon intensity for Scope 1, 2, and 3 emissions per $1 million of
revenue moved to 0.39 tCO2e (FY24: 0.26 tCO2e), and per employee to 0.64 tCO2e (FY24: 0.43 tCO2e). These figures
clearly demonstrate our efforts to integrate sustainability into operations, maintaining a minimal environmental footprint
despite operational growth. Our current emissions inventory report excludes any outsourced services.
We continue to strengthen our commitment to sustainability by encouraging environmentally responsible behaviours
across our office. Our key initiatives focus on waste reduction, promoting reusable alternatives, improving energy
efficiency, and creating a greener office culture.
Highlights include:
HARMONEY ANNUAL REPORT FY25
23
We build team collaboration while supporting our community and promoting sustainable practices.
Our employees recently participated in an innovative team-building program where groups assembled
bicycles from scratch for donation to local charities.
As part of our sustainability initiatives, and led by our People & Culture team, Harmoney staff stepped
up to donate and collect toys for the Kindness Collective—bringing joy to children, supporting families
in need, and making a meaningful impact in our wider community.
HARMONEY ANNUAL REPORT FY25
24
Social
Customer experience
Since launching in 2014, Harmoney has aimed to transform
how people borrow money. We believe that access to finance
at the right time can have a profoundly positive impact on
someone’s life. We envision a future where technology works
seamlessly and responsibly in the background to empower
customers with smarter financial choices and greater
opportunities. Our comprehensive online application process
harnesses advanced technology and reliably sourced
financial data to assess creditworthiness. Using machine
learning-based scoring systems, we evaluate customer
suitability with speed, accuracy, and fairness.
Our purpose is to help and inspire people
to start now on their dreams or start
fresh through financial products that are
simple, smart and secure..
This year, Harmoney successfully launched its Stellare®
2.0 platform in New Zealand. With the platform now in use
across both Australia and New Zealand and a commitment to
continuous improvement, Harmoney is greatly progressing its
mission to enhance the lending experience.
We introduced an automated, scalable and personalised
credit engine that provides a reliable initial loan assessment
within minutes, giving customers faster clarity on their loan
eligibility with less effort and greater convenience.
We are developing AI-driven agentic workflows within our
Stellare® 2.0 platform empowering customers to complete
their applications more easily and accurately to receive faster
and better decisions, ultimately supporting better access to
credit when it’s needed most.
We ensure consistent handling of customer complaints
by acting in accordance with our Complaints and Internal
Dispute Resolution Policy, and perform call quality
assessments to monitor calls against policies. We have
Google and Shopper Approved scores of
4.7/5 from nearly 60,000 reviews, and a low complaint rate
with approximately 0.02% of active customers raising a
complaint with Australian Financial Complaints Authority
(AFCA) over the 2025 financial year.
Delivering positive outcomes for our customers remains
at the heart of Harmoney’s mission. We are committed
to continuously improving the customer experience and
ensuring meaningful support is available for those who need
it most, particularly individuals facing financial hardship.
Hardship and supporting customers
In an environment marked by rising living costs, increasing
cybercrime, and growing financial uncertainty, Harmoney
recognises the vital importance of supporting vulnerable
customers and those experiencing unexpected financial
hardship. We take a personalised and empathetic approach
by assessing hardship cases individually and working
collaboratively with customers to find tailored solutions.
These may include adjustments to repayment plans,
temporary payment deferrals, or a combination of both, all
designed to ease financial pressure and support recovery
We are also committed to promoting financial inclusion by
helping customers gain access to credit for the first time,
and by offering responsible alternatives to high-cost lending
products such as small amount credit contracts (SACCs) and
payday advances.
To safeguard customer wellbeing, we apply strict responsible
lending practices and credit policies to ensure we do not
provide credit in ways that could worsen a borrower’s
financial situation. Using advanced analytics, we proactively
identify signs of vulnerability, such as risky spending
patterns or problem gambling behaviours, and provide
early interventions for those who may be at risk of financial
distress.
Financial inclusion and accessibility
Harmoney is committed to expanding access to fair and
responsible credit by identifying and removing barriers within
the lending process. By automating credit assessments,
we reduce the influence of human bias, creating a more
equitable experience for all applicants. We are developing
more personalised solutions tailored to the unique needs of
different customer segments, including a range of age groups
and financial backgrounds. Our goal is to ensure that our
products and services are inclusive, accessible, and designed
to support a diverse population on their financial journeys.
HARMONEY ANNUAL REPORT FY25
25
Customer financial wellbeing
During times of economic uncertainty, helping customers
build financial resilience becomes even more crucial.
Harmoney actively supports financial literacy and awareness
by providing educational blog articles and resources on
our website. These cover a wide range of topics, including
personal finance, loans, and debt consolidation. While the
full rollout of our new dedicated blog section is planned for
next year, we remain focused on delivering content that helps
customers make confident and informed financial decisions.
In FY25, Harmoney supported over 9,400 customers by
directing them towards ClearScore to better understand their
credit scores.
Data and cyber security
As a 100% online lending business entrusted with sensitive
customer information, Harmoney recognises the vital
responsibility we hold in safeguarding data. Cyber security
remains a core priority, and we are committed to preventing,
detecting, and mitigating cyber threats to ensure the ongoing
protection of our customers’ information.
The Australian Cyber Security Centre (ACSC) reported over
87,400 cybercrime incidents in Australia during the fiscal
year 2023-24, averaging one report every six minutes. While
this represents a 7% decrease in the number of reported
incidents compared to the previous year, the financial impact
has continued to rise. The average cost per cybercrime
report for individuals increased by 17%, with an average
financial loss of $30,700 per incident. Similarly, in New
Zealand, the New Zealand Computer Emergency Response
Team (CERT NZ) quarterly data reports consistently show
the financial and insurance services sector reported the
highest number of cyber incidents, indicating the significant
impact on sensitive information. These statistics highlight the
growing cyber threat landscape in both countries.
Harmoney is committed to maintaining the highest standards
of data security and privacy. We have implemented
comprehensive cybersecurity policies and robust technical
controls to safeguard the financial and credit-related data
entrusted to us by our customers. Our ongoing efforts
focus on ensuring the security, availability, and integrity of
all customer information through a continuously evolving
cybersecurity framework. Key initiatives and controls include
but are not limited to:
•
SOC 2 Type 1 audit covering Security, Availability, and
Confidentiality achieved in 2024, and a SOC 2 Type 2
audit scheduled for completion in October 2025.
•
Incident response improvements targeting an average
response time of under one hour.
•
Endpoint protection on employee devices to stop
ransomware, malware, exploits, and other threats.
•
Employing industry best practices for protection of
data including segregation of production systems, and
anonymisation of data used for analytics purposes.
•
Multi-factor authentication (MFA).
•
Modern cloud-native technology stack, with web
application firewalls and threat detection systems.
•
External penetration testing to assess and fortify our
security measures.
•
Business continuity, incident response, and disaster
recovery policies, which we test annually.
•
Recoverability testing of major system backups, at least
annually.
•
100% staff completion of cybersecurity training to
increase cyber awareness and literacy.
Employee wellness and training
We take a people first approach in
everything we do.
As at 30 June 2025, Harmoney’s total workforce consisted of
79 full-time employees across Australia and New Zealand.
At the core of Harmoney are our people whose inspiration,
imagination, creativity, and passion drive our efforts. Our
goal is to deliver a positive experience that keeps our people
safer, healthier, and more engaged.
At Harmoney, employee engagement reflects how
connected, motivated, and positive our people feel about
their work. We conduct annual surveys to track progress,
gather feedback, and identify key areas for continued
improvement. Our overall company engagement score was
88% for the year 2025 (2024: 83%).
To maintain a high-performing culture, our leaders set clear
goals, offer consistent feedback, and actively celebrate
achievements. Every team member is supported with a
personalised development plan that encourages both
personal and professional growth.
We place a strong focus on employee wellbeing and
strive to promote work-life balance through flexible
work arrangements. We conduct annual reviews of
our remuneration and benefits to ensure fairness and
competitiveness. We also provide:
HARMONEY ANNUAL REPORT FY25
26
•
An annual training budget for upskilling or certifications;
•
Health insurance;
•
Wellness days;
•
Employee Assistance Programs;
•
First-aid and mental first-aid certifications;
•
Flu vaccinations;
•
Top up maternity benefit & flexi-return policy for parental
leave.
Supporting the mental, physical, and social wellbeing of
our people is key to fostering a positive, healthy, and high-
performing workplace.
Diversity, equity and inclusion
We’re proud of our diverse and inclusive
culture where our people are empowered
to push boundaries.
Harmoney recognises the valuable impact that a diverse and
inclusive workforce has on overall business performance and
remains committed to advancing and measuring progress
in Diversity, Equity, and Inclusion (DEI). We are dedicated to
building a workplace that reflects the diverse communities
we serve, knowing that varied perspectives drive innovation,
support stronger decision-making, and enhance employee
satisfaction.
Key highlights in FY25 include the following:
•
Hosting an internship program with external organisation
“Summer of Tech” to support the development of young
engineers; and
•
Facilitating mentor-mentee programs including female-led
“lunch n learn” sessions.
Our commitment to diversity, equity, and inclusion is reflected
in a variety of initiatives and strategies within our workplace:
•
We offer leadership training, including unconscious bias
training for hiring managers.
•
Our recruitment approach emphasises attracting a diverse
range of candidates with gender-neutral and inclusive job
descriptions.
•
We employ proactive succession planning to enhance the
representation of women in leadership roles.
•
We actively support the development of young women
leaders through networks such as Powrsuit, a New
Zealand-based membership network for women leaders.
•
We recognise and celebrate a variety of cultural events
and important dates such as International Women’s Day
to promote awareness, inclusivity, and respect throughout
our team.
These initiatives are part of our broader goal to build a
workplace that not only values diversity and inclusion but
actively nurtures an environment where everyone has the
opportunity to succeed.
Modern slavery
Harmoney will be publishing its third annual Modern Slavery
Statement under Australia's Modern Slavery Act 2018 in
December 2025.
Harmoney has introduced staff training to raise awareness of
modern slavery, with 100% employee completion achieved.
HARMONEY ANNUAL REPORT FY25
27
Governance
Effective governance serves as the foundation for delivering sustainable, long-term value. At Harmoney, we integrate
financial performance with meaningful societal impact, ensuring rigorous accountability while strengthening stakeholder
trust. This balanced approach enables us to develop and implement sustainability strategies that create both business value
and positive community outcomes.
Governance and risk management
At Harmoney, sustainability risk management is embedded within our core governance framework. The Board maintains
direct oversight of sustainability-related risks and opportunities. The Board is also well supported by the Audit and Risk
Committee, the Senior Leadership Team and the Sustainability Officer in delivering these objectives.
Our sustainability commitment is also formalised through a Sustainability Policy which establishes clear principles for
incorporating economic, environmental, social, and governance considerations into our business strategy and daily
operations.
Our governance framework is set out on our website (https://investorhub.harmoney.com.au/governance) and comprises our
Code of Conduct, and various charters and policies which are designed to reinforce a culture of corporate integrity and fulfil
our statutory obligations.
We also publish a Corporate Governance Statement on our website, which sets out the details of our practices with
respect to the ASX Corporate Governance Council’s “Corporate Governance Principles and Recommendations (4th
Edition)” (the ASX Recommendations), which is current as at 30 June 2025. Harmoney has elected to comply with all of
the ASX Recommendations. Harmoney has also considered the Consultation Draft for a proposed 5th Edition of the ASX
Recommendations.
Harmoney maintains a rigorous policy review process to ensure compliance with relevant statutory requirements, the ASX
Listing Rules, and our obligations in respect of our Australian Financial Services Licence, Australian Credit Licence, and Fit
and Proper Person certification under the CCCFA (New Zealand). These policies are also regularly reviewed by external
experts, including law firms and AML specialists, to ensure their relevance and effectiveness.
The Board delegates the responsibility for reviewing and approving Harmoney's risk management system (including policies
and frameworks) to the Audit and Risk Committee, for identifying, assessing, and managing financial and non-financial risks.
Harmoney undergoes regular automated and manual audits on risk and compliance testing, conducted both internally and
by independent external parties. Our Compliance Manager oversees the ongoing development and implementation of our
comprehensive risk and compliance assurance testing program. We continue to introduce accurate and independently-
validated regulatory obligations registers across the enterprise and have progressively updated policies, training programs,
and controls testing procedures.
In FY25, Harmoney continued refinement of its enterprise-wide risk management framework to better identify and assess
sustainability-related risks and opportunities. A key enhancement was the introduction of an AI Governance and Controls
policy. This will evolve to ultimately be incorporated into our risk management framework as our adoption of AI across
business processes matures.
HARMONEY ANNUAL REPORT FY25
28
Ethics and integrity
Ethics and integrity lie at the heart of Harmoney’s values, serving as the foundation for how we build trust, foster credibility,
and strengthen relationships with all stakeholders—from investors and employees to customers and the communities we
serve. By upholding these principles in every decision and action, we ensure transparency, accountability, and long-term
sustainability in all aspects of our business.
Harmoney’s corporate governance framework includes a Code of Conduct, Anti-Bribery & Corruption Policy, Disclosure
and Communication Policy, Trading Policy, and Whistleblower Policy.
Harmoney ensures compliance with all relevant legal obligations through:
•
Regular review and reporting of our compliance with licence obligations.
•
Regular review of our Responsible Lending Policy and procedures.
•
Continuous enhancement of our systems to identify and support potentially vulnerable applicants.
•
Ongoing staff training across all relevant regulations.
Harmoney is a signatory to the Principles of Reciprocity and Data Exchange with RDEA (a subsidiary of the Australian
Retail Credit Association). Harmoney is also a member of the Financial Services Federation in New Zealand, the industry
body for responsible non-bank lenders.
Stakeholder engagement
Harmoney actively engages with our stakeholder groups which include investors, employees, customers and regulators,
to align our business practices with their needs and priorities. For our investor community, we provide transparent
communication through the Investor Centre on our website, complemented by our interactive Investor Hub. This digital
platform enables real-time engagement and immediate access to company updates and announcements.
We implement systematic qualitative surveys as part of our Product Governance Framework. These insights directly
identify market needs and preferences, ensuring our product development remains customer-centric and compliant with
regulatory standards.
Harmoney maintains a robust Complaints and Internal Dispute Resolution Policy to guarantee fair, consistent, and
transparent handling of all customer concerns. Our Feedback and Complaints Committee meets regularly to systematically
analyse customer feedback, identify patterns, resolve systemic issues, and identify areas for improvement. Any significant
matters are reported to the Board.
FY25 was Harmoney’s second year of reporting Internal Dispute Resolution data to the Australian Securities and
Investments Commission (ASIC).
Harmoney is a member of two independent external, dispute resolution schemes, the Australian Financial Complaints
Authority (AFCA) in Australia, and the Financial Services Complaints Limited (FSCL), a financial ombudsman service, in
New Zealand.
HARMONEY ANNUAL REPORT FY25
29
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HARMONEY ANNUAL REPORT FY25
30
Directors’ Report
The Directors present their report, together with the financial statements, on the consolidated entity consisting of Harmoney
Corp Limited and the entities it controlled at the end of, or during the year ended, 30 June 2025 (“the Group”).
Directors
As at the date of this report, the Directors of Harmoney Corp Limited are:
Paul Lahiff
Independent Chairman
Monique Cairns
Independent Director
John Quirk
Independent Director
Neil Roberts
Founder and Non-executive Director
David Stevens
Chief Executive Officer and Managing Director
For details of Directors during the year refer to the Corporate Information section.
Principal activities
Harmoney provides customers with secured and unsecured personal loans that are easy to access, competitively priced
using risk-adjusted interest rates and accessed 100% online. The Group operates across New Zealand and Australia.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Group during the year ended 30 June 2025.
Dividends
There were no dividends paid, recommended, or declared during the current or previous financial year.
For and on behalf of the Directors
Paul Lahiff
David Stevens
Chairman
Chief Executive Officer and Managing Director
Auckland
20 August 2025
HARMONEY ANNUAL REPORT FY25
31
Financial
Report
HARMONEY ANNUAL REPORT FY25
32
Directors’ Responsibility Statement.................................................................................................. 33
Consolidated Statement of Profit or Loss and Other Comprehensive Income...................... 34
Consolidated Statement of Financial Position ............................................................................... 35
Consolidated Statement of Changes in Equity .............................................................................. 36
Consolidated Statement of Cash Flows............................................................................................ 37
Notes to the Consolidated Group Financial Statements.............................................................. 38
Independent Auditor's Report.............................................................................................................. 67
HARMONEY ANNUAL REPORT FY25
33
Directors’ Responsibility
Statement
The Directors are pleased to present the consolidated financial statements of Harmoney Corp Limited for the year ended 30
June 2025.
The Directors are responsible for ensuring that the consolidated financial statements give a true and fair view of the financial
position of the Group as at 30 June 2025 and its financial performance and cash flows for the year ended on that date.
The Directors consider that the consolidated financial statements of the Group have been prepared using appropriate
accounting policies consistently applied and supported by reasonable judgements and estimates and that all the relevant
financial reporting and accounting standards have been followed.
The Directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the
determination of the financial position of the Group and facilitate compliance of the consolidated financial statements with the
Financial Reporting Act 2013.
The Board of Directors of Harmoney Corp Limited authorised the consolidated financial statements set out on pages 34-65
for issue on 20 August 2025.
For and on behalf of the Board
Paul Lahiff
David Stevens
Chairman
Chief Executive Officer and Managing Director
20 August 2025
HARMONEY ANNUAL REPORT FY25
34
Consolidated Statement of
Profit or Loss and
Other Comprehensive Income
For the year ended 30 June 2025
Year ended
Year ended
30 June 2025
30 June 2024
Notes
$'000
$'000
Interest income
5
131,828
121,768
Other income
6
419
773
Total income
132,247
122,541
Interest expense
5
58,997
55,848
Impairment expense
7
28,859
30,497
Customer acquisition expenses
13,678
10,592
Personnel expenses
8
12,334
12,513
Customer servicing expenses
5,967
5,918
Technology expenses
4,936
4,954
General and administrative expenses
2,539
2,831
Depreciation and amortisation expenses
9
1,629
12,582
Profit / (loss) before income tax
3,308
(13,194)
Income tax benefit
10
2,210
-
Profit / (loss) for the year attributable to shareholders of Harmoney Corp
Limited
5,518
(13,194)
Other comprehensive income / (loss)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
624
(255)
Loss on cash flow hedge reserve, net of tax
11
(6,566)
(5,067)
Other comprehensive loss for the year, net of tax
(5,942)
(5,322)
Total comprehensive loss for the year attributable to shareholders of
Harmoney Corp Limited
(424)
(18,516)
Earnings per share for loss attributable to the ordinary equity holders of the
Company:
Cents
Cents
Basic earnings per share
12
5
(13)
Diluted earnings per share
12
5
(13)
THE ABOVE CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.
HARMONEY ANNUAL REPORT FY25
35
Consolidated Statement of Financial
Position
As at 30 June 2025
30 June 2025
30 June 2024
Notes
$'000
$'000
Assets
Cash and cash equivalents
13
52,617
37,744
Trade and other assets
14
3,594
2,959
Finance receivables
15
795,375
724,825
Derivative financial instruments
11
-
525
Property and equipment
16
2,339
2,938
Deferred tax assets
10
15,600
10,633
Intangible assets
17
8,323
4,491
Total assets
877,848
784,115
Liabilities
Payables and accruals
18
7,866
5,101
Derivative financial instruments
11
8,733
-
Lease liability
16
2,499
3,010
Borrowings
19
824,267
739,546
Total liabilities
843,365
747,657
Net assets
34,483
36,458
Equity
Share capital
20
127,473
124,561
Foreign currency translation reserve
21
2
(622)
Share-based payment reserve
21
-
4,463
Cash flow hedge reserve
11
(6,217)
349
Accumulated losses
(86,775)
(92,293)
Total equity
34,483
36,458
THE ABOVE CONSOLIDATED STATEMENT OF FINANCIAL POSITION SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.
HARMONEY ANNUAL REPORT FY25
36
Consolidated Statement of Changes in
Equity
For the year ended 30 June 2025
Share
capital
Foreign
currency
translation
reserve
Share-
based
payment
reserve
Cash flow
hedge
reserve
Accumulated
losses
Total
Notes
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 30 June 2023
123,985
(367)
3,820
5,416
(79,099)
53,755
Loss for the year
-
-
-
-
(13,194)
(13,194)
Other comprehensive loss, net of
income tax
-
(255)
-
(5,067)
-
(5,322)
Total comprehensive loss
-
(255)
-
(5,067)
(13,194)
(18,516)
Recognition of share-based payments
21
-
-
3,043
-
-
3,043
Transfer to share capital
21
576
-
(576)
-
-
-
Share option cancellations
21
-
-
(1,824)
-
-
(1,824)
Balance at 30 June 2024
124,561
(622)
4,463
349
(92,293)
36,458
Profit for the year
-
-
-
-
5,518
5,518
Other comprehensive income /(loss),
net of income tax
-
624
-
(6,566)
-
(5,942)
Total comprehensive income / (loss)
-
624
-
(6,566)
5,518
(424)
Recognition of share-based payments
21
-
-
(152)
-
-
(152)
Transfer to share capital
21
3,039
-
(3,039)
-
-
-
Share option cancellations
21
-
-
(1,272)
-
-
(1,272)
Acquisition of treasury shares
21
(127)
-
-
-
-
(127)
Balance at 30 June 2025
127,473
2
-
(6,217)
(86,775)
34,483
THE ABOVE CONSOLIDATED STATEMENT OF CHANGES IN EQUITY SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.
HARMONEY ANNUAL REPORT FY25
37
Consolidated Statement of Cash Flows
For the year ended 30 June 2025
THE ABOVE CONSOLIDATED STATEMENT OF CASH FLOWS SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.
Year ended
Year ended
30 June 2025
30 June 2024
Notes
$'000
$'000
Cash flows from operating activities
Interest received
131,179
119,123
Interest paid
(58,143)
(57,243)
Fee income earned / (rebated)
132
(714)
Payments to suppliers and employees
(38,130)
(36,872)
Net cash generated by operating activities
13
35,038
24,294
Cash flows from investing activities
Net advances to customers
(94,645)
(47,660)
Payments for software intangibles and equipment
(4,704)
(4,712)
Net cash used in investing activities
(99,349)
(52,372)
Cash flows from financing activities
Proceeds from finance receivables borrowings
13
161,957
266,753
Repayments of finance receivables borrowings
13
(82,128)
(246,310)
Proceeds from corporate debt
13
-
2,500
Purchase of treasury shares
(127)
-
Principal element of lease payments
13
(562)
(517)
Net cash generated by financing activities
79,140
22,426
Cash and cash equivalents at the beginning of the period
37,744
43,454
Net increase / (decrease) in cash and cash equivalents
14,829
(5,652)
Effects of exchange rate changes on cash and cash equivalents
44
(58)
Cash and cash equivalents at the end of the period
13
52,617
37,744
HARMONEY ANNUAL REPORT FY25
38
Notes to the Consolidated Group
Financial Statements
For the year ended 30 June 2025
1.
Corporate information
Harmoney Corp Limited (the Company) and its subsidiaries (collectively, the Group) are companies whose primary business is
to originate, service and invest in loans. There has been no change in the principal activity of the Group during the year.
Harmoney Corp Limited is a company incorporated in New Zealand and registered under the Companies Act 1993, whose
shares are publicly traded on the Australian Securities Exchange (ASX). The Company was incorporated on 1 May 2014.
2.
Material accounting policies
2.1.
Basis of preparation
The consolidated financial statements of Harmoney Corp Limited comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS) and have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (GAAP). The Company is a Tier 1 for-profit entity for the purposes of complying with GAAP. The
consolidated financial statements also comply with IFRS® Accounting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB).
The results and position of each Group entity are expressed in Australian dollars (AUD), which is the presentation currency
for the consolidated financial statements, unless otherwise stated. The financial statements of each of the Group’s entities
are measured using the currency of the primary economic environment in which that entity operates (the functional currency).
The functional currency of the Company is New Zealand dollars (NZD). The Group uses a different presentation currency
to the functional currency of the Company to reflect the significance of the Group’s Australian loan book and for better
comparability with industry peers.
All amounts disclosed in the financial statements and notes have been rounded to the nearest thousand Australian dollars
($’000) unless otherwise stated.
The consolidated Group financial statements have been prepared on a going concern basis using a historical cost basis,
except for derivative financial instruments which are measured at fair value.
The Consolidated Statement of Financial Position has been prepared in order of liquidity, including the comparatives. All
assets and liabilities are current unless otherwise stated in the notes. The disaggregation of amounts receivable and payable
in the next twelve months and beyond is outlined in the accompanying notes to the financial statements and the contractual
maturity profile of financial liabilities is outlined in note 25.4.
2.2.
Basis of consolidation
The consolidated Group financial statements incorporate the financial statements of the Company and entities (including
structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
•
has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
•
has the ability to use its power to affect its returns.
HARMONEY ANNUAL REPORT FY25
39
2.2. Basis of consolidation continued
The assets and liabilities of entities whose functional currency is not AUD are translated at the exchange rates ruling at
reporting date. Revenue and expense items are translated at the spot rate at the transaction date or a rate approximating that
rate. Exchange differences are taken to the foreign currency translation reserve.
All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the
Group are eliminated in full on consolidation.
2.3.
Application of new and revised accounting standards
The consolidated Group financial statements have been prepared using consistent accounting policies and methods of
computation that were applied in the previous financial year, except for the following amendments which apply for the first
time effective for the reporting period beginning on or after 1 January 2024:
•
Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants (Amendments to NZ IAS 1)
The amendments to NZ IAS 1 specify the requirements for classifying liabilities as current or non-current and non-current
liabilities with covenants from 1 January 2024. The amendments clarify the following:
•
An entity’s right to defer settlement of a liability for at least twelve months after the reporting period must have
substance and must exist at the end of the reporting period.
•
If an entity’s right to defer settlement of a liability is subject to covenants, such covenants affect whether that right
exists at the end of the reporting period only if the entity is required to comply with the covenant on or before the end
of the reporting period.
•
The classification of a liability as current or non-current is unaffected by the likelihood that the entity will exercise its
right to defer settlement.
•
In case of a liability that can be settled, at the option of the counterparty, by the transfer of the entity’s own equity
instruments, such settlement terms do not affect the classification of the liability as current or non-current only if the
option is classified as an equity instrument.
These amendments have resulted in additional disclosures in note 19, but have no effect on the measurement of any items
in the consolidated financial statements of the Group.
•
Disclosure of Fees for Audit Firms’ Services (Amendments to FRS-44)
The amendments to FRS 44 require a description of the services provided by a reporting entity’s audit or review firm and
to disclose the fees incurred by the entity for those services using prescribed categories.
These amendments have no effect on the measurement or presentation of any items in the consolidated financial
statements of the Group, and there are no material changes to the existing disclosures. Refer to note 26 for further details.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet
effective.
The following amendments are effective for the period beginning 1 January 2026:
•
Amendments to the Classification and Measurement of Financial Instruments (Amendments to NZ IFRS 9 Financial
Instruments and NZ IFRS 7 Financial Instruments: Disclosures)
The following standards and amendments are effective for the annual reporting period beginning 1 January 2027:
•
NZ IFRS 18 Presentation and Disclosure in Financial Statements
The Group is currently assessing the effect of these new accounting standards and amendments. The Group does not expect
any other standards issued by the New Zealand Accounting Standards Board (NZASB) or IASB, but not yet effective, to have
a material impact on the Group.
HARMONEY ANNUAL REPORT FY25
40
2.4.
Goods and services tax
Revenue, expenses, assets, and liabilities are recognised net of the amount of goods and services tax (GST) except:
•
where the amount of GST incurred is not recovered from the taxation authority, the unrecoverable GST expense is
included in the related expense item in the income statement.
•
receivables and payables which are recognised inclusive of GST (the net amount of GST recoverable from or payable to
the taxation authority is included as part of receivables or payables).
•
cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to, the taxation authority, are presented as operating cash flows.
2.5.
Foreign currency translation
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at reporting date exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss.
3.
Significant accounting judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and
expenses and actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future periods.
3.1.
Expected credit loss provision
The Group has estimated the provision for expected credit losses (ECL) based on historically observed patterns of borrower
behaviour adjusted for current and expected future economic outcomes. These are discussed in detail in note 15 and have a
significant impact on these financial statements.
The Group measures the allowance for ECL using an expected credit loss impairment model as required by NZ IFRS 9
Financial Instruments (NZ IFRS 9). The Group’s accounting policy for the recognition and measurement of the allowance for
ECL is described in note 15.
3.2.
Fair value measurement of derivatives
The fair value measurement of the Group’s interest rate swaps is a significant accounting estimate. For details on the valuation
method used see note 24. For interest rate sensitivity analysis see note 25.
3.3.
Deferred tax asset relating to tax losses
NZ IAS 12 Income Taxes allows the capitalisation of tax losses as deferred tax assets only to the extent that there is
convincing evidence that future taxable profit will be available against which the unused tax losses can be utilised. The Group
has estimated the amount of deferred tax assets for which there is convincing evidence that utilisation will occur in the
medium term and disclosed the remainder as unrecognised deferred tax assets. Refer to note 10 for further details.
4.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Chief Executive Officer.
HARMONEY ANNUAL REPORT FY25
41
4.1.
Description of segments
The CODM considers the business from a geographical operating perspective and has identified two reportable segments:
Australia and New Zealand.
The CODM assesses the business on a Cash Net Profit After Tax (Cash NPAT) basis. Cash NPAT is a non-GAAP measure
and it is reconciled to profit/(loss) before income tax in the consolidated statement of profit or loss and other comprehensive
income. Cash NPAT consists of profit/(loss) after income tax, adjusted for determined non-cash items and is intended as a
supplementary measure of operating performance for readers to understand the underlying performance of the Group. Cash
NPAT does not have a standard meaning prescribed by GAAP and therefore may not be comparable to information presented
by other entities. Incurred credit losses and movement in expected credit loss provision are each non-GAAP measures,
included to provide a more granular view of underlying credit impairment performance. Together these measures sum to the
GAAP impairment expense measure, as detailed in note 7.
Intersegment revenue and expenses are not considered by the CODM and are accordingly excluded from segment reporting.
Operating expenses are attributed to New Zealand unless they are direct incremental costs of the Australian operation.
4.2.
Major customers
There are no customers who account for more than 10% of the Group’s revenue.
4.3.
Operating segments
The following tables present income and loss information for the Group’s operating segments.
Segmented income statement for the year ended 30 June 2025 $'000
Australia
New Zealand
Group
Interest income
74,643
57,185
131,828
Other income
-
419
419
Total income
74,643
57,604
132,247
Interest expense
30,835
28,162
58,997
Incurred credit losses
19,558
9,285
28,843
Customer acquisition expenses
10,587
3,091
13,678
Personnel expenses (excl. share-based payments)
1,040
10,570
11,610
Customer servicing expenses
3,619
2,348
5,967
Technology expenses
-
4,936
4,936
General and administrative expenses
490
2,049
2,539
Cash profit / (loss) before income tax
8,514
(2,837)
5,677
Cash tax expense
-
-
-
Cash NPAT
8,514
(2,837)
5,677
Non-cash adjustments
Movement in expected credit loss provision
(1,531)
1,515
(16)
Share-based payments expenses
(30)
(694)
(724)
Depreciation and amortisation expenses
(33)
(1,596)
(1,629)
Profit / (loss) before income tax
6,920
(3,612)
3,308
Movement in deferred tax assets
-
2,210
2,210
Profit / (loss) after income tax
6,920
(1,402)
5,518
Segmented financial position for the year ended 30 June 2025 $'000
Assets
510,001
367,847
877,848
Liabilities
511,923
331,442
843,365
HARMONEY ANNUAL REPORT FY25
42
4.3. Operating segments continued
5.
Interest
5.1.
Interest income
5.2.
Interest expense
Segmented income statement for the year ended 30 June 2024 $'000
Australia
New Zealand
Group
Interest income
61,937
59,831
121,768
Other income
-
773
773
Total income
61,937
60,604
122,541
Interest expense
23,944
31,904
55,848
Incurred credit losses
20,837
9,862
30,699
Customer acquisition expenses
7,526
3,066
10,592
Personnel expenses (excl. share-based payments)
917
10,108
11,025
Customer servicing expenses
3,040
2,878
5,918
Technology expenses
-
4,954
4,954
General and administrative expenses
552
2,279
2,831
Cash profit / (loss) before income tax
5,121
(4,447)
674
Cash tax expense
-
-
-
Cash NPAT
5,121
(4,447)
674
Non-cash adjustments
Movement in expected credit loss provision
1,291
(1,089)
202
Share-based payments expenses
(5)
(1,483)
(1,488)
Depreciation and amortisation expenses
(49)
(12,533)
(12,582)
Profit / (loss) before income tax
6,358
(19,552)
(13,194)
Profit / (loss) after income tax
6,358
(19,552)
(13,194)
Segmented financial position for the year ended 30 June 2024 $'000
Assets
408,599
375,516
784,115
Liabilities
406,249
341,408
747,657
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Interest income: financial assets at amortised cost
131,828
121,768
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Interest on receivables funding
54,691
52,054
Interest on corporate debt
4,078
3,520
Interest on financial liabilities at amortised cost
58,769
55,574
Interest on lease liability (Note 16)
228
274
Total interest expense
58,997
55,848
HARMONEY ANNUAL REPORT FY25
43
5.2. Interest expense continued
Interest income includes interest and loan establishment fees amortised as part of the effective interest rate. Interest income
and interest expense are recognised in the consolidated statement of profit or loss and other comprehensive income for all
financial assets and liabilities measured at amortised cost using the effective interest method. The effective interest method
allocates interest income or interest expense over the life of the contract, or when appropriate a shorter period, using the
effective interest rate. The effective interest rate is the discount rate at which the present value of the future cash flows
equals the net carrying amount of the financial asset or liability. Establishment fees are required to be amortised over the
expected life of the finance receivable in accordance with NZ IFRS 9. The deferred amount is recognised as a reduction to
the finance receivable (note 15).
6.
Other income
Grants are recognised at their fair value where there is reasonable assurance that the grant will be received, and the Group
will comply with all attached conditions. Harmoney received grants related to the R&D Tax Incentive as funded by Inland
Revenue.
7.
Impairment expense
7.1.
Incurred credit loss
Financial assets are written off when there is no reasonable expectation of recovery, such as the borrower failing to engage
in a repayment plan with the Group. The Group generally categorises a finance receivable as incurred credit loss when the
borrower fails to make contractual payments more than 120 days past due. Where finance receivables have been written off,
the Group continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognised in profit or loss. See note 15 for movements in the expected credit loss provision table.
7.2.
Movement in expected credit loss provision
This records the movement in the provision due to the composition of the finance receivables (note 15). For example, due to
the growth in the finance receivables, change in likelihood of credit loss from the standard modelled provision, and change in
macroeconomic conditions.
8.
Personnel expenses
Year ended
Year ended
30 June 2025
30 June 2024
$’000
$’000
Wages and salaries
10,978
10,414
Superannuation expense
632
611
Share-based payments expenses (Note 21)
724
1,488
Total personnel expenses
12,334
12,513
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Grant income
419
773
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Incurred credit loss
28,843
30,699
Movement in expected credit loss provision
16
(202)
Impairment expense
28,859
30,497
HARMONEY ANNUAL REPORT FY25
44
9.
Depreciation and amortisation
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Depreciation charge on right-of-use assets (Note 16)
638
661
Depreciation charge on property and equipment
104
192
Amortisation charge on intangible assets (Note 17)
887
2,220
Impairment loss on intangible assets (Note 17)
-
9,509
Total depreciation and amortisation expense
1,629
12,582
In the prior reporting period, the impairment loss on intangible assets resulted from a one-off impairment expense related to
the retirement of the Group's initial platform, Stellare® 1.0, and a prototype platform developed in 2023, both of which have
been replaced by Stellare® 2.0.
Refer to note 16 for further information on property and equipment, and leases. Refer to note 17 for further information on
intangible assets.
10.
Income taxes
10.1.
Income tax recognised in profit or loss
The income tax expense for the year can be reconciled to the accounting loss as follows:
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Current tax
In respect of the current year
-
119
Deferred tax
In respect of the current year
(2,210)
(119)
Total income tax benefit recognised in the period
(2,210)
-
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Profit / (loss) before income tax
3,308
(13,194)
Income tax expense / (benefit) calculated at 30%
(234)
(377)
Income tax expense / (benefit) calculated at 28%
1,162
(3,342)
Effect of expenses that are not deductible
(125)
(72)
Under / (over) adjustment to prior period taxation
12
597
(Prior period loss recognised) / Income tax benefit not recognised
(2,969)
3,197
Foreign exchange differences
(56)
(3)
Total income tax benefit recognised in the period
(2,210)
-
HARMONEY ANNUAL REPORT FY25
45
10. Income taxes continued
10.2.
Amounts recognised in other comprehensive income
30 June 2025
30 June 2024
$'000
$'000
Aggregate current and deferred tax arising in the reporting period relating to components of
other comprehensive income:
Cash flow hedge reserve
(2,692)
(2,085)
Other
(65)
38
The tax rate used for the reconciliation above is the corporate tax rate of 28% payable by corporate entities in New Zealand
and 30% for those in Australia, on taxable profits under tax law in their respective jurisdictions. Income tax expense
represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit/(loss) before tax’ as
reported in the consolidated statement of profit or loss and other comprehensive income because of items of income or
expense that are taxable or deductible in other periods and items that are never taxable or deductible. The Group’s current
tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. No cash
income tax was paid by the Group.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that there is convincing other evidence that taxable profits will be available
against which those deductible temporary differences can be utilised. The Group’s forecasts show taxable profits in the
coming years.
10.3.
Deferred tax balances
The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:
30 June 2025
30 June 2024
$'000
$'000
Deferred tax assets
Expected credit loss (ECL) provision
8,127
8,841
Accruals
1,749
1,333
Lease liability
700
843
Derivatives
2,516
-
Share-based payments
140
343
Losses
3,114
-
Plant & equipment and intangibles
-
276
Deferred tax assets
16,346
11,636
Deferred tax liabilities
Derivatives
-
(175)
Right of use asset
(606)
(772)
Distributing services
-
(56)
Plant & equipment and intangibles
(140)
-
Deferred tax liabilities
(746)
(1,003)
Net deferred tax assets
15,600
10,633
HARMONEY ANNUAL REPORT FY25
46
10. Income taxes continued
The carrying amount of deferred tax assets is reviewed at each reporting date and adjusted to the extent that it is probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset recognised to be utilised. The
Group has unrecognised deferred tax assets of $19.8m at 30 June 2025 (30 June 2024: $22.9m), relating to tax losses and
temporary differences not recognised in the statement of financial position. These amounts are available to offset future
taxable profits of $69.3m at 30 June 2025 (30 June 2024: $80.9m), representing a reduction of $11.6 million during the
year, primarily attributable to an increase in recognised losses. The tax losses can be carried forward subject to meeting the
requirements of the applicable tax legislation.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
11.
Cash flow hedge
Cash flow hedge reserve
Derivative financial instruments
The following table provides a breakdown of the derivative financial instruments presented in the consolidated statement of
financial position:
Movements in the derivative financial instruments are as follows:
The Group obtains financing (note 19) in order to fund finance receivables (note 15). The interest rate payable on the
borrowings is floating while the interest receivable is fixed at the point the funds are lent. The interest rate risk is managed
and mitigated through the use of interest rate swaps, which exchange floating interest payments with fixed interest payments.
The swaps are entered into to match the maturity profile of estimated repayments of the Group’s borrowings. These are
accounted for at trade date.
30 June 2025
30 June 2024
$'000
$'000
Opening balance
349
5,416
Analysis of amounts recognised in Other Comprehensive Income
Loss arising on changes in fair value of derivatives
(9,258)
(7,152)
Deferred tax on derivatives (Note 10)
2,692
2,085
Loss on cash flow hedge reserve
(6,566)
(5,067)
Closing balance
(6,217)
349
30 June 2025
30 June 2024
Interest rate swaps
$'000
$'000
Derivative financial assets
-
1,431
Derivative financial liabilities
(8,733)
(906)
Net derivative financial instruments
(8,733)
525
30 June 2025
30 June 2024
Interest rate swaps
$'000
$'000
Opening balance
525
7,677
Transferred to profit or loss for the year (included in interest expenses)
(106)
(6,211)
Loss arising on changes in fair value of derivatives
(9,152)
(941)
Closing balance
(8,733)
525
HARMONEY ANNUAL REPORT FY25
47
11. Cash flow hedge continued
The cash flow hedge reserve is used to recognise the effective portion of gains or losses on derivatives (interest rate swaps)
that are designated and qualify as cash flow hedges.
At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and
hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the
cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge
transactions. Refer to note 25 for financial risk management disclosures.
The valuations for New Zealand were based on market rates at 30 June 2025 of 3.33% for the 1-month BKBM and 3.55% for
the 5-year swap rate (2024: 5.60% and 5-year swap rate 4.38%) and for Australia 3.61% for the 1-month BBSW and 3.59% for
the 5-year swap rate (2024: 4.30% and 5-year swap rate 4.26%).
Refer to note 24 for further information on the fair value measurement of interest rate swaps.
12.
Earnings per share
Options
Performance rights (zero strike price options) under the Group’s share-based compensation plan as detailed in note 21 are
considered to be potentially ordinary shares. As at 30 June 2025, there were no options that could potentially dilute basic
earnings per share in the future, but were not included in the calculation of diluted earnings per share in the current year
because they are antidilutive for the year ended 30 June 2025 (2024: 2,875,270).
13.
Cash and cash equivalents
Cash and cash equivalents at the end of the reporting period as shown in the consolidated statement of cash flows can be
reconciled to the consolidated statement of financial position as follows:
No adjustment has been made for counterparty credit risk in cash and cash equivalents as the risk of impairment is not
expected to be material.
30 June 2025
30 June 2024
$'000
$'000
Profit / (loss) after tax for the year attributable to the owners of the Group
5,518
(13,194)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
101,969,880
101,969,555
Weighted average number of ordinary shares used in calculating diluted earnings per share
101,969,880
101,969,555
Cents
Cents
Basic earnings per share
5
(13)
Diluted earnings per share
5
(13)
30 June 2025
30 June 2024
$'000
$'000
Cash on hand and demand deposits
22,820
20,609
Restricted cash
29,797
17,135
Total cash and cash equivalents
52,617
37,744
HARMONEY ANNUAL REPORT FY25
48
13. Cash and cash equivalents continued
Restricted cash is held by the Warehouse Trusts (note 23). These funds may only be used for purposes defined in the trust
documents, and are therefore not available for general use by the Group.
Reconciliation of profit / (loss) for the year to net cash generated by operating activities
Non-cash transactions
During the current year, the Group did not enter into any non-cash investing and financing activities (2024: Nil).
Change in liabilities arising from financing activities
1. Operating cash flows include prepaid establishment fees and the interest element of lease payments.
2. Non-cash adjustments include accrued interest.
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Profit / (loss) for the year after tax
5,518
(13,194)
Adjustments for:
Impairment expense
27,783
29,974
Share-based payments
(839)
1,231
Depreciation, amortisation and impairment
1,629
12,582
Change in deferred establishment fee
928
(169)
Borrowing establishment fees
1,104
(1,576)
Income tax benefit
(2,210)
-
Other movements
50
(113)
Change in operating assets and liabilities:
Increase in trade and other assets
(334)
(334)
Increase / (Decrease) in payables and accruals
2,794
(1,271)
Decrease in provisions
-
(1,529)
Increase in accrued interest
(1,385)
(1,307)
Net cash generated by operating activities
35,038
24,294
Borrowings
Lease liability
Total
$'000
$'000
$'000
Balance at 1 July 2023
(720,503)
(3,506)
(724,009)
Operating cash flows 1
2,455
274
2,729
Financing cash flows
(22,943)
517
(22,426)
Non-cash adjustments 2
(976)
(274)
(1,250)
New leases (non-cash)
-
(45)
(45)
Foreign exchange differences (non-cash)
2,421
24
2,445
Balance at 30 June 2024
(739,546)
(3,010)
(742,556)
Operating cash flows 1
6
228
234
Financing cash flows
(79,829)
562
(79,267)
Non-cash adjustments 2
(757)
(228)
(985)
New leases (non-cash)
-
(18)
(18)
Foreign exchange differences (non-cash)
(4,141)
(33)
(4,174)
Balance at 30 June 2025
(824,267)
(2,499)
(826,766)
HARMONEY ANNUAL REPORT FY25
49
14.
Trade and other assets
30 June 2025
30 June 2024
$'000
$'000
Financial assets at amortised cost
Trade receivables
1,996
1,341
Total financial assets at amortised cost
1,996
1,341
Prepayments
1,461
1,542
GST receivable
137
76
Total trade and other assets
3,594
2,959
Trade receivables include grant income of $0.9m (2024: $0.4m) and $1m (2024: $0.7m) from receivables charged off and sold
in the current year.
No adjustment has been made for counterparty credit risk in the financial assets above as all counterparties are considered
to be of good credit standing and the risk of impairment is expected to be not material.
15.
Finance receivables
15.1.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to
the Group. The Group’s main exposure to credit risk arises from finance receivables. The finance receivable credit risk
management framework comprises underwriting, risk and responsible lending policies; anti-money laundering (AML) and
counter-terrorism financing (CTF) protocols; collection and recovery policies; a proprietary credit scorecard; a risk-based
pricing model; and fraud detection services.
15.2.
ECL Provision
The Group measures the allowance for ECL using an expected credit loss impairment model as required by NZ IFRS 9.
Under the ECL model, the Group applies a three-stage approach to measuring the ECL based on credit migration between
the stages. The ECL model is based on loan performance history calculated separately for Australia and New Zealand. As
the product is unsecured personal loans there is no further segmentation. Management then applies a further adjustment to
incorporate future macroeconomic factors using forward looking inputs.
Stage 1: 12-month ECL - No significant increase in credit risk
Finance receivables in this category have not had a significant increase in credit risk since initial recognition. ECL resulting
from default events that are possible within the next 12 months (‘12-month ECL’) are recognised for financial instruments that
remain in stage 1.
30 June 2025
30 June 2024
$'000
$'000
Finance receivables
828,693
758,129
Accrued interest
7,215
6,128
Deferred establishment fees
(3,721)
(2,786)
Expected credit loss (ECL) provision
(36,812)
(36,646)
Total finance receivables
795,375
724,825
HARMONEY ANNUAL REPORT FY25
50
15.2 ECL Provision continued
Stage 2: Lifetime ECL - Significantly increased credit risk
An assessment of whether credit risk has increased significantly since initial recognition is performed at the end of each
reporting period by considering the change in the risk of default occurring over the remaining life of the finance receivable.
Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit risk when
30 days past due but less than 90 days past due, or where a payment deferral has been granted following a successful
hardship application and for 12 months after the completion of the hardship period, or where the account has defaulted
(exceeded 90 days past due) in the last 12 months. A lifetime ECL provision is recorded for stage 2 receivables.
Stage 3: Lifetime ECL - Credit-impaired
The Group determines that a financial instrument is credit-impaired and in stage 3 by considering relevant objective evidence,
primarily whether contractual payments of either principal or interest are past due for more than 90 days. If such unlikeliness
to pay is not identified at an earlier stage, it is deemed to occur when an exposure is 90 days past due.
Movement between stages
The Group determines that loans may move in both directions through the stages of the impairment model. Loans previously
in Stage 2 may move back to Stage 1 if it is no longer considered that there has been a significant increase in credit risk.
Similarly, loans in Stage 3 may move back to Stage 1 or Stage 2 if they are no longer assessed to be credit-impaired.
Forward-looking information (FLI)
The Group has a process for incorporating forward-looking economic scenarios and determining the probability weightings
assigned to each scenario in determining the overall ECL. The economic overlay is a forward-looking provision in addition to
the standard modelled provision.
The Group has identified a number of key indicators that are considered in modelling the overlay for each country and each
stage separately. The most significant of these indicators are gross domestic product, unemployment rate, employment and
hours worked, public demand, household consumption, income and savings rate, investment and inflation which are obtained
from publicly available data (range of market economists and official data sources). These indicators are assessed semi-
annually and judgement is applied in determining the probability weighting assigned across the four economic scenarios
detailed below (Base Case, Worst Case, Poor Case and Best Case). The Group’s Assets and Liabilities Committee provides
ultimate approval for FLI inputs and the resulting overlay applied.
Base scenario: This scenario considers Reserve Bank, OECD Economic Outlooks and Fitch Global forecasts. This scenario
assumes that there is little to no impact to households with respect to increasing cost of living or increased net interest
expense from mortgage rate increases in the medium term.
Poor scenario: This scenario contemplates the degree of impact to borrowers of adverse macroeconomic conditions such
as rising inflation, constrained supply chains, rising mortgage interest rates and the consequent impacts to household cost of
living pressures.
Best scenario: This scenario is included to account for the potential impact of more favourable macroeconomic conditions
for specific segments, such as those households that have benefitted from constrained consumption resulting in increased
savings rates as a cushion for increased cost of living pressures; and
Worst scenario: This scenario contemplates the potentially severe impact of remote, extremely adverse macroeconomic
conditions.
HARMONEY ANNUAL REPORT FY25
51
15.2 ECL Provision continued
The table below presents the gross exposure and related ECL allowance for finance receivables:
30 June 2024
Stage 1
Stage 2
Stage 3
Total
Expected loss rate
2.98%
26.49%
63.50%
4.79%
$'000
$'000
$'000
$'000
Gross carrying amount
710,625
50,322
3,310
764,257
Expected credit loss provision
(21,212)
(13,332)
(2,102)
(36,646)
Net carrying amount
689,413
36,990
1,208
727,611
Movements in the expected credit loss provision are as follows:
The reconciliation of the provision for ECL and finance receivables by stage are presented below. The key line items in the
reconciliation are:
•
The “transfers between stages” lines represent transfers between Stage 1, Stage 2 and Stage 3 prior to remeasurement of
the provision for ECL.
•
The “business activity during the year” line represents new accounts originated during the year net of those that were
derecognised due to final repayments during the year.
•
The “net remeasurement of provision for ECL” line represents the impact on the provision for ECL due to changes in credit
quality during the year (including transfers between stages) and changes due to forward-looking economic scenarios.
•
“Incurred credit loss” represent a reduction in the provision for ECL as a result of derecognition of exposures where there
is no reasonable expectation of full recovery.
30 June 2025
Stage 1
Stage 2
Stage 3
Total
Expected loss rate
2.40%
21.06%
67.56%
4.40%
$'000
$'000
$'000
$'000
Gross carrying amount
761,681
68,047
6,180
835,908
Expected credit loss provision
(18,308)
(14,329)
(4,175)
(36,812)
Net carrying amount
743,373
53,718
2,005
799,096
30 June 2025
30 June 2024
$'000
$'000
Opening balance
36,646
36,919
Movement in the provision recognised due to:
Increase/(Decrease) in economic overlay
(6,021)
5,093
Impact of increase in gross finance receivables
35,030
25,333
Finance receivables written off during the period as uncollectible (Note 7)
(28,843)
(30,699)
Total provision
36,812
36,646
HARMONEY ANNUAL REPORT FY25
52
15.2 ECL Provision continued
Expected credit loss provision by stage
Not credit-
impaired
Not credit-
impaired
Credit-impaired
Stage 1
Stage 2
Stage 3
Total
$'000
$'000
$'000
$'000
Total provisions for ECL on loans as at 30 June 2023
22,119
11,301
3,499
36,919
Transfers to Stage 1
12,210
(12,210)
-
-
Transfers to Stage 2
(2,760)
10,032
(7,272)
-
Transfers to Stage 3
-
(21,928)
21,928
-
Business activity during the year
3,800
(592)
(122)
3,086
Net remeasurements of provision for ECL
(14,031)
28,385
6,088
20,442
Incurred credit loss
(66)
(1,623)
(22,013)
(23,702)
Foreign exchange differences
(60)
(33)
(6)
(99)
Total provisions for ECL on loans as at 30 June 2024
21,212
13,332
2,102
36,646
Transfers to Stage 1
15,131
(14,993)
(138)
-
Transfers to Stage 2
(4,058)
15,451
(11,393)
-
Transfers to Stage 3
(3)
(28,689)
28,692
-
Business activity during the year
2,804
(6,037)
2,047
(1,186)
Net remeasurements of provision for ECL
(16,809)
36,752
6,518
26,461
Incurred credit loss
(40)
(1,553)
(23,675)
(25,268)
Foreign exchange differences
71
66
22
159
Total provisions for ECL on loans as at 30 June 2025
18,308
14,329
4,175
36,812
Gross finance receivables by stage
Stage 1
Stage 2
Stage 3
12-month ECL
Lifetime ECL
Lifetime ECL
Total
$'000
$'000
$'000
$'000
Gross carrying amount as at 30 June 2023
722,507
21,599
4,642
748,748
Transfers to Stage 1
32,902
(32,902)
-
-
Transfers to Stage 2
(88,738)
98,408
(9,670)
-
Transfers to Stage 3
-
(38,966)
38,966
-
Net of new financial assets and repayments during the
year
48,354
6,365
506
55,225
Gross incurred credit loss (before recoveries)
(1,936)
(4,020)
(31,125)
(37,081)
Foreign exchange differences
(2,464)
(162)
(9)
(2,635)
Gross carrying amount as at 30 June 2024
710,625
50,322
3,310
764,257
Transfers to Stage 1
34,534
(34,378)
(156)
-
Transfers to Stage 2
(130,245)
144,032
(13,787)
-
Transfers to Stage 3
(159)
(42,051)
42,210
-
Net of new financial assets and repayments during the
year
143,882
(47,053)
3,189
100,018
Gross incurred credit loss (before recoveries)
(1,146)
(3,226)
(28,622)
(32,994)
Foreign exchange differences
4,190
401
36
4,627
Gross carrying amount as at 30 June 2025
761,681
68,047
6,180
835,908
HARMONEY ANNUAL REPORT FY25
53
16.
Property and equipment
Property and equipment are non-current and recognised at historical cost less depreciation. Depreciation is calculated on a
straight-line basis to allocate the cost of the assets, net of their residual values, over their estimated useful lives.
16.1.
Leases
Amounts recognised in the consolidated statement of financial position
The consolidated statement of financial position shows the following amounts relating to leases:
Other lease disclosures
30 June 2025
30 June 2024
$'000
$'000
Expense relating to short-term leases
13
12
The lease payments are discounted using the incremental borrowing rate, being the rate that the individual lessee would
have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic
environment with similar terms, security, and conditions.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability and any lease
payments made at or before the commencement date less any lease incentives received.
30 June 2025
30 June 2024
$'000
$'000
Right-of-use assets
2,165
2,758
Equipment
174
180
Total property and equipment
2,339
2,938
30 June 2025
30 June 2024
Right-of-use assets
$'000
$'000
Opening balance - buildings
2,758
3,394
Additions
18
45
Other
27
(20)
Depreciation expense for the period
(638)
(661)
Closing balance - buildings
2,165
2,758
30 June 2025
30 June 2024
Lease liabilities
$'000
$'000
Opening balance - lease liability
3,010
3,506
Additions
18
45
Interest expense
228
274
Lease payments
(790)
(791)
Other
33
(24)
Total lease liability
2,499
3,010
Current lease liabilities
618
553
Non-current lease liabilities
1,881
2,457
Total lease liability
2,499
3,010
HARMONEY ANNUAL REPORT FY25
54
16.1. Leases continued
Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Payments associated with short-term leases and all leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
The Group leases its Auckland office for a lease term of six years expiring on 31 December 2028.
17.
Intangible assets
The intangible assets held are non-current and consist of internally developed software. The carrying amount of the Group’s
software is:
The Group has incurred and will continue to incur significant costs on software development projects relating to its
proprietary online borrower application process and loan management platform.
The impairment loss recognised in the prior year related to the write-off of Harmoney’s Stellare® 1.0 platform in FY24.
Internally developed software is capitalised using an internal framework.
An internally-generated intangible asset arising from development is recognised if, and only if, all of the following have been
demonstrated:
•
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
•
the intention to complete the intangible asset and use or sell it;
•
the ability to use or sell the intangible asset;
•
how the intangible asset will generate probable future economic benefits;
•
the availability of adequate technical, financial, and other resources to complete the development and to use or sell the
intangible asset; and
•
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date
when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can
be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation
and accumulated impairment losses.
For capitalised development costs which are considered work in progress, amortisation of the asset begins when the
development is complete, and the asset is available for use.
The Group amortises development with a limited useful life using straight-line method over 7 years (2024: 7 years). The
amortisation period and method are reviewed annually.
30 June 2025
30 June 2024
$'000
$'000
Opening net book amount
4,491
11,568
Additions - internal development
4,670
4,615
Amortisation charge
(887)
(2,220)
Impairment loss (Note 9)
-
(9,509)
Foreign exchange differences
49
37
Closing net book amount
8,323
4,491
HARMONEY ANNUAL REPORT FY25
55
18.
Payables and accruals
Employee benefits accrual
19.
Borrowings
19.1.
Receivables funding
Receivables funding relates to borrowings specific to the Warehouse Trusts (note 23) of $802.0m and are secured by their
assets of $831.7m. The classification of receivable funding borrowings as current or non-current in the table above is based
on the end of the replenishment period. A borrowing is classified as current if its replenishment period ends within 12 months
of the balance sheet date. This classification does not indicate the amount of cash repayment due within the next 12 months.
Instead, once the replenishment period ends, the borrowing is repaid from the cash flows generated by the underlying finance
receivables, rather than from a single, lump-sum payment. The Group has a history of extending these facilities and expects
to do so again, as such, the current liability represents the contractual end of the replenishment period, not an imminent
repayment obligation.
30 June 2025
30 June 2024
$'000
$'000
Financial liabilities at amortised cost
Accruals
2,926
2,039
Trade and other payables
2,619
1,165
Total financial liabilities at amortised cost
5,545
3,204
Employee benefits accrual
2,217
1,719
GST payable
104
178
Total payables and accruals
7,866
5,101
30 June 2025
30 June 2024
$'000
$'000
Current employee incentives
Employee incentive accrual
1,298
901
Annual leave accrual
727
662
Long service leave accrual
153
134
Total current employee incentives
2,178
1,697
Non-current employee incentives
Long service leave accrual
39
22
Total employee benefits accrual
2,217
1,719
30 June 2025
30 June 2024
$'000
$'000
Current
Receivables funding
118,660
202,630
Corporate debt
22,267
-
Total current borrowings
140,927
202,630
Non-current
Receivables funding
683,340
515,166
Corporate debt
-
21,750
Total non-current borrowings
683,340
536,916
Total borrowings
824,267
739,546
HARMONEY ANNUAL REPORT FY25
56
19. Borrowings continued
19.2.
Warehouse financing arrangements
Unrestricted access was available at reporting date to the warehouse facilities as detailed below:
1. The drawn amount includes $52.9m (2024: $49.4m) of subordinated debt which is not presented on the consolidated statement of financial position as it is
within the Group and is eliminated on consolidation.
The undrawn amount of the warehouse facilities relates to amounts that are available for drawdown from funders but does
not include restricted cash that has already been drawn but has not yet been utilised for funding purposes. Refer to note 13
for further information.
19.3.
Corporate debt facility
As at 30 June 2025, the Group had a debt facility with a limit of $22.5 million (30 June 2024: $30.0 million). This facility has a
term extending to June 2026 and incorporates market standard financial covenants and interest rates, without any equity or
convertible components. At the reporting date, the full amount of $22.5 million (30 June 2024: $22.5 million) was drawn. The
availability period for undrawn amounts expired in June 2025, resulting in no remaining undrawn capacity as of 30 June 2025
(30 June 2024: $7.5 million).
The $22.5m corporate debt is reduced by unamortised prepaid establishment costs. Prepaid establishment costs are
amortised over the expected term of the facility through interest expense.
The facility is guaranteed by way of a performance and payment guarantee by Harmoney Corp Limited and each of its
Subsidiary Companies (note 23).
Under the terms of the corporate debt and warehouse facilities, the Group is required to comply with financial and non-
financial covenants. Harmoney has complied with these covenants as at 30 June 2025.
20.
Share capital
20.1.
Ordinary shares
Ordinary shares carry a right to one vote per share, to an equal share in dividends, and to a pro-rata share of net assets on
wind up. The Group does not have authorised capital or par value in respect of its issued shares.
Warehouse facilities
30 June 2025
30 June 2024
$'000
$'000
Total facilities
1,024,509
947,070
Drawn at reporting date 1
847,944
766,259
Undrawn at reporting date
176,565
180,811
30 June 2025
30 June 2024
Number of shares
Share capital
Number of shares
Share capital
$'000
$'000
Fully paid ordinary shares
104,056,714
127,473
101,964,147
124,561
Total issued capital
104,056,714
127,473
101,964,147
124,561
Ordinary shares
As at 30 June 2024
101,964,147
Shares issued under share-based payment arrangements
2,092,567
As at 30 June 2025
104,056,714
HARMONEY ANNUAL REPORT FY25
57
21.
Reserves
21.1.
Foreign currency translation reserve
Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their
functional currencies to the Group’s presentation currency (i.e. AUD) are recognised directly in other comprehensive income
and accumulated in the foreign currency translation reserve.
21.2.
Share-based payment reserve
In relation to share-based payment transactions, the Group recognised an expense of $0.7m (2024: $1.5m) within the
consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2025.
Share-based compensation plan
The Group receives services from employees and Directors as consideration for equity instruments (zero strike price options)
of the Group. The fair value of the employee services received in exchange for the grant of the options is recognised as an
expense over the relevant vesting period. The total amount to be expensed is determined by reference to the fair value of the
options granted:
•
including any market performance conditions;
•
excluding the impact of any service and non-market performance vesting conditions; and
•
including the impact of any non-vesting conditions.
At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based
on the non-market vesting conditions and service conditions. It recognises the impact of the revision to original estimates,
if any, in profit or loss, with a corresponding adjustment to equity. When the options are exercised, the company issues new
shares, or purchases shares from the market.
The weighted average exercise price was $Nil for all the groups of options presented in the table below.
The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2025 was
$0.54 (2024: $0.41). No options expired during the periods covered by the table below.
The weighted average remaining contractual life of options outstanding at the end of the financial year was 0 years (2024:
3.08 years).
30 June 2025
30 June 2024
$'000
$'000
Opening balance
4,463
3,820
Arising on equity settled benefits
(152)
3,043
Transferred to share capital
(3,039)
(576)
Share option cancellations
(1,272)
(1,824)
Closing balance
-
4,463
HARMONEY ANNUAL REPORT FY25
58
21.2. Share-based payment reserve continued
The following table provides details of the options granted by the Group as remuneration to employees and Directors.
The Group has no outstanding options as at 30 June 25 and all vested options have been exercised, however 1,628,816
remain unsettled at 30 June 2025. All remaining options have been forfeited or cancelled.
The amount of performance rights that vest depends on the achievement of applicable performance hurdles over the
relevant period and continued employment. The performance hurdles are designed to align participants’ objectives with
the fundamental values of the Company and reward achievements which will deliver significant long-term value to the
shareholders of the Company.
Options are granted under the plan for no consideration and carry no dividends or voting rights.
22.
Related party transactions
Balances and transactions between the Company, its subsidiaries, and controlled entities which are related parties of the
Company, have been eliminated on consolidation and are not disclosed in this note.
Key management personnel (KMP) are defined as those persons having authority and responsibility for planning, directing,
and controlling the activities of the Group, directly or indirectly, and include the Executive Directors, Independent Directors
and the Chief Financial Officer. The aggregate compensation made to KMP of the Group is set out below:
1. The employee benefits accrual at note 18 includes $0.4m of short-term benefits and superannuation due to KMP (June 24: $Nil).
30 June 2025
Number of share options
Grant date
Exercise
price
Grant date
fair value
Opening
balance
01/07/2024
Granted
Exercised
Forfeited
Closing balance
30/06/2025
Vested &
exercisable
15 Jun 2021
$ nil
$ 1.40
4,200,000
-
1,175,500
3,024,500
-
-
1 Dec 2021
$ nil
$ 1.77
100,000
-
61,000
39,000
-
-
1 Jul 2022
$ nil
$ 0.71
305,000
-
186,050
118,950
-
-
1 Sep 2023
$ nil
$ 0.53
4,049,000
-
628,539
3,420,461
-
-
1 Dec 2024
$ nil
$ 0.41
-
160,000
41,478
118,522
-
-
Total
8,654,000
160,000
2,092,567
6,721,433
-
-
30 June 2024
Number of share options
Grant date
Exercise
price
Grant date
fair value
Opening
balance
01/07/2023
Granted
Exercised
Forfeited
Closing balance
30/06/2024
Vested &
exercisable
15 Jun 2021
$ nil
$ 1.40
6,506,500
-
384,160
1,922,340
4,200,000
-
1 Dec 2021
$ nil
$ 1.77
162,000
-
24,400
37,600
100,000
-
1 Jul 2022
$ nil
$ 0.71
360,000
-
-
55,000
305,000
-
1 Sep 2023
$ nil
$ 0.53
-
4,099,000
-
50,000
4,049,000
-
Total
7,028,500
4,099,000
408,560
2,064,940
8,654,000
-
30 June 2025
30 June 2024
$'000
$'000
Short-term employee benefits 1
3,238
2,520
Superannuation expense 1
175
211
Share-based payments
(425)
710
Total remuneration of key management personnel
2,988
3,441
HARMONEY ANNUAL REPORT FY25
59
23.
Controlled entities
Details of the Group’s material subsidiaries and controlled entities at the end of the reporting period are as follows.
1. Controlled Entities: Management have determined that Harmoney Warehouse No.1 Trust, Harmoney Collections Trust, Harmoney
Warehouse No.3 Trust, and Harmoney NZ ABS 2023-1 Trust are controlled entities. Harmoney Group subsidiaries have been appointed
Manager, Servicer, and residual income beneficiary in each entity. Under NZ IFRS 10 Consolidated Financial Statements, an investor controls
an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee. As the Group controls the financing and operating activities of the Trusts and is the
residual income beneficiary, the controlled entities are controlled by the Group and are required to be consolidated into the Group financial
statements.
Footnote
Place of
incorporation
and operation
Proportion of ownership interest and voting
power held by the Group
2025
2024
Subsidiary Companies
Australia
Harmoney Australia Pty Ltd
Australia
100%
100%
Harmoney Services Australia Pty Ltd
Australia
100%
100%
New Zealand
Harmoney Services Limited
New Zealand
100%
100%
Warehouse Trusts
Australia
Harmoney Australia Warehouse No.1 Trust
Australia
100%
100%
Harmoney Collections Trust
Australia
100%
100%
Harmoney Australia Warehouse No.2 Trust
Australia
100%
100%
Harmoney Australia Warehouse No.3 Trust
Australia
100%
100%
New Zealand
Harmoney Warehouse No.1 Trust
1
New Zealand
n/a
n/a
Harmoney Collections Trust
1
New Zealand
n/a
n/a
Harmoney Warehouse No.3 Trust
1
New Zealand
n/a
n/a
Harmoney NZ ABS 2023-1 Trust
1
New Zealand
n/a
n/a
HARMONEY ANNUAL REPORT FY25
60
24.
Financial assets and liabilities
The total carrying amount of the Group’s financial assets and liabilities by category are detailed below:
NZ IFRS 9 requires financial assets to be classified based on two criteria:
a. the business model within which financial assets are managed; and
b. their contractual cash flow characteristics (whether the cash flows represent solely payment of principal and interest
(SPPI)).
There are three resulting classifications of financial assets under NZ IFRS 9:
a. Amortised cost: financial assets with contractual cash flows that comprise SPPI, and which are held in a business model
whose objective is to collect their contractual cash flows, are measured at amortised cost;
b. Fair value through other comprehensive income (FVTOCI): financial assets with contractual cash flows that comprise
SPPI, and which are held in a business model whose objective is to both collect their contractual cash flows and to sell, are
measured at FVTOCI; and
c. Fair value through profit or loss (FVTPL): financial assets with contractual cash flows that do not represent SPPI, or which
are held under a different business model are measured at FVTPL. Financial assets can also be designated at FVTPL if
doing so eliminates or significantly reduces an accounting mismatch.
Other than derivative financial instruments, which are held at fair value, all other financial assets and liabilities are held at
amortised cost. For these instruments, the fair values are not materially different to their carrying amounts since the interest
receivable/payable is either close to current market rates or the instruments are short-term in nature.
The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair value on a
recurring basis:
30 June 2025
30 June 2024
$'000
$'000
Financial assets at amortised cost
Cash and cash equivalents
52,617
37,744
Trade and other receivables
1,994
1,341
Finance receivables
795,375
724,825
849,986
763,910
Financial liabilities at amortised cost
Payables and accruals
5,545
3,141
Borrowings
824,267
739,546
829,812
742,687
Financial assets at fair value
Derivative financial instruments
-
525
-
525
Financial liabilities at fair value
Derivative financial instruments
8,733
-
8,733
-
30 June 2025 $'000
Level 1
Level 2
Level 3
Financial liabilities
Derivative financial instruments
Hedging derivatives - interest rate swaps
-
(8,733)
-
30 June 2024 $'000
Level 1
Level 2
Level 3
Financial assets
Derivative financial instruments
Hedging derivatives - interest rate swaps
-
525
-
HARMONEY ANNUAL REPORT FY25
61
24. Financial assets and liabilities continued
There have been no transfers between levels in the year (2024: Nil).
The Group’s policy is to recognise transfers into and out of fair value hierarchy levels as at the end of the reporting period.
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity
securities) is based on quoted market prices at the end of the reporting period.
The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included
in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Fair value
The interest rate swaps are initially recognised at fair value through other comprehensive income on the date the derivative
contract is entered into and are subsequently measured at their fair value at each reporting date. All significant inputs
required to measure their fair value are observable, therefore the swaps are level 2 in the fair value hierarchy.
The fair value of the interest rate swaps is calculated using a discounted cash flow model using forward interest rates
extracted from observable yield curves. Discount rates may include an adjustment for counterparty credit risk.
25.
Financial risk management
25.1.
Financial risk management objectives
The Group’s activities expose it to a variety of financial risks, primarily market risk (including interest rate risk and foreign
currency risk), credit risk and liquidity risk. The Group’s risk management program focuses on understanding drivers of
financial risk and seeks to minimise potential adverse effects on the financial performance of the Group.
The Group uses derivative financial instruments (interest rate swaps) to hedge interest rate risk. Derivatives are exclusively
used for hedging purposes i.e. not as trading or other speculative instruments.
The Board has overall responsibility for the establishment and oversight of the risk management framework. The Board is
responsible for developing and monitoring risk management policies. Risk management procedures are established by the
Board and carried out by management to identify and analyse the risks faced by the Group and to set controls and monitor
risks.
The Group determines concentrations of risk by monitoring the geographical area, currency or market it operates in. Liquidity
risk and capital risk are managed at a Group level. The Group actively manages these risks so there are no significant
concentrations of risk with a single counterparty or group of counterparties.
25.2.
Market risk
Market risk is the risk that changes in market prices such as interest rates will affect the Group’s income or the value of
holdings in its financial instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.
HARMONEY ANNUAL REPORT FY25
62
25.2. Market risk continued
Interest rate risk
Interest rate risk is the risk of changes in interest rates negatively impacting the Group’s financial performance. The Group’s
main interest rate risk arises from cash at bank, term deposits and borrowings. Cash at bank, term deposits and borrowings
obtained at variable rates expose the Group to interest rate risk. Cash at bank and term deposits obtained at fixed rates
expose the Group to fair value interest rate risk.
The Group originates loans to customers that have fixed interest rates that are repaid over a relatively short period.
As at the reporting date, the Group had the following financial assets and liabilities exposed to variable interest rate risk.
Receivables funding are variable rate borrowings where the rates are reset monthly to current market rates. Interest rate risk
is managed on these borrowings by entering interest rate swaps, whereby the Group pays a fixed rate and receives a floating
rate. The contracts require settlement monthly of net interest receivable or payable. The settlement dates coincide with the
dates on which interest is payable on the underlying borrowings.
The gain or loss from remeasuring the hedging instruments at fair value is recognised in other comprehensive income and
deferred in equity in the cash flow hedge reserve, to the extent that the hedge is effective. It is reclassified into profit or loss
when the hedged item affects it. In the year ended 30 June 2025, no amount was reclassified into profit or loss (2024: Nil)
due to hedge ineffectiveness.
The Group’s policy is to hedge a portion of the variability in future cash flows attributable to the interest rate risk on floating
rate receivables funding borrowings (RFB) using interest rate swaps. As at 30 June 2025, the notional value of swaps was
80% (2024: 85%) of RFB.
The effects of the interest rate swaps on the Group’s financial position and performance are as follows:
30 June 2025
30 June 2024
$'000
$'000
Carrying amount held in derivative financial instruments
(8,733)
525
Notional amount
614,963
610,329
Hedge ratio
1:1
1:1
Change in fair value of outstanding hedging instruments during the year
(9,258)
(7,152)
Change in fair value of outstanding hedged item used to determine hedge effectiveness
9,258
7,152
The interest rate sensitivity analysis below has been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period and assumes that the amount of the liability outstanding
at the end of the reporting period was outstanding for the whole year. A 100 basis point increase or decrease is used which
represents management’s assessment of the reasonably possible change in interest rates.
30 June 2025
30 June 2024
$'000
$'000
Financial assets
Cash on hand and demand deposits
22,820
20,609
Restricted cash
29,797
17,135
Total financial assets
52,617
37,744
Financial liabilities
Borrowings - Receivables funding
(802,000)
(717,796)
Borrowings - Corporate debt
(22,267)
(21,750)
Total financial liabilities
(824,267)
(739,546)
HARMONEY ANNUAL REPORT FY25
63
25.2. Market risk continued
If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Group’s profit for the
year ended 30 June 2025 would decrease/increase by $1.6m (2024: $1.1m). This is attributable to the Group’s exposure to
interest rates on its variable rate borrowings.
Other components of equity change as a result of an increase/decrease in the fair value of the cash flow hedges through
other comprehensive income. If interest rates had been 100 basis points higher/lower and all other variables were held
constant, the Group’s equity for the year ended 30 June 2025 would increase by $8.5m (2024: $11.0m) or decrease by $8.7m
(2024: $7.9m). This is attributable to the Group’s exposure to interest rates on its interest rate swaps.
Foreign exchange risk
Foreign currency risk arises on financial instruments that are denominated in a currency other than the functional currency in
which they are measured. The Group’s main foreign exchange risk arises from inter-company receivables and payables which
do not form part of a net investment in a foreign operation.
The Group has not hedged any foreign exchange risk during the year.
The Group has the following exposure to New Zealand dollars, expressed in Australian dollars. The Group’s exposure to
foreign currency changes for all other currencies is not material.
The following table demonstrates the sensitivity to a 5% increase or decrease in the New Zealand dollar exchange rate, which
represents management’s assessment of the reasonably possible change in this exchange rate. The impact on the Group’s
profit or loss is due to changes in the fair value of monetary assets and liabilities.
25.3.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group has a
diversified funding model and currently comprises of a mix of cash reserves and committed undrawn credit facilities to meet
anticipated funding requirements for new business. In addition, the Group can redraw against its committed credit limits if the
principal outstanding is reduced. Details of unused available loan facilities are set out in note 19.
The Group manages operational liquidity risk by maintaining cash reserves and available borrowing facilities and by
continuously monitoring actual and forecast cash flows. The Group seeks to have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions.
The receivables funding borrowings are required to be repaid from the finance receivable repayments. If these repayments
are not sufficient to repay borrowings Harmoney is not required to make repayments from funds outside the Warehouse
Trusts.
NZD exposure
30 June 2025
30 June 2024
$'000
$'000
Financial instruments
Foreign currency payable
1,663
-
Foreign currency receivable
(1,549)
(1,233)
Net exposure
114
(1,233)
Impact on post-tax profit
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
AUD/NZD +5%
(6)
62
AUD/NZD -5%
6
(62)
HARMONEY ANNUAL REPORT FY25
64
25.4.
Remaining undiscounted contractual maturities
The following tables detail the Group’s remaining contractual maturities for its financial instrument liabilities. The tables are
based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are
required to be paid. The contractual maturity date for borrowings refers to the date until which the Warehouse Trusts may
continue to purchase further receivables using principal payments of the finance receivables and further drawdowns of the
facility. After that date, unless the agreement terms are extended, which the Group expects to, and has an established history
of achieving, the borrowings are required to be paid down as customers make repayments on the finance receivables. If these
repayments are not sufficient to repay borrowings, Harmoney is not required to make repayments from funds outside the
Warehouse Trusts. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and
therefore these totals may differ from their carrying amount in the statement of financial position.
25.5.
Capital risk management
The Group’s objectives when managing capital are to safeguard the ability to continue as a going concern and to maintain an
optimal capital structure to facilitate growth in the business while reducing the cost of capital. The Group’s capital structure
comprises equity raised by the issue of ordinary shares and external borrowings. As shown in note 19, the Group has capacity
to fund finance receivables growth with warehouse facility headroom of $177m (June 2024: $181m).
25.6.
Credit risk management
Refer to note 15.1 for details of the Group’s credit risk management.
Contractual maturities of financial liabilities
at 30 June 2025
Less than 1 year
1 to 2 years
More than 2 years
Total
$'000
$'000
$'000
$'000
Non-derivatives
Non-interest bearing
Payables and accruals
5,545
-
-
5,545
Interest bearing
Borrowings
191,660
602,698
136,956
931,314
Lease liability
801
816
1,266
2,883
Total non-derivatives
198,006
603,514
138,222
939,742
Derivatives
Interest rate swaps - net outflow
4,692
2,941
1,330
8,963
Total derivatives
4,692
2,941
1,330
8,963
Contractual maturities of financial liabilities
at 30 June 2024
Less than 1 year
1 to 2 years
More than 2 years
Total
$'000
$'000
$'000
$'000
Non-derivatives
Non-interest bearing
Payables and accruals
3,141
-
-
3,141
Interest bearing
Borrowings
262,499
410,311
189,999
862,809
Lease liability
781
781
2,054
3,616
Total non-derivatives
266,421
411,092
192,053
869,566
Derivatives
Interest rate swaps - (net inflow)/net outflow
(1,952)
387
1,078
(487)
Total derivatives
(1,952)
387
1,078
(487)
HARMONEY ANNUAL REPORT FY25
65
26.
Remuneration of auditors
Fees for audit and assurance services are paid to BDO for the year ended 30 June 2025 (2024: KPMG). Non-audit
assurance services relate to Harmoney's Australian Financial Services Licence and Australian Prudential Regulation Authority
compliance audits. Agreed-upon procedures in the prior year were in relation to information extracted from the new Stellare®
2.0 Loan Management System.
27.
Contingent liabilities and commitments
There are no contingent liabilities and capital commitments as at 30 June 2025 (2024: Nil).
28.
Events after the reporting period
There were no material events subsequent to year end.
Year ended
Year ended
30 June 2025
30 June 2024
$'000
$'000
Fees for audit and assurance services
Statutory audit fees
310
461
Non-audit assurance services
28
48
Agreed-upon procedures
-
6
Total fees for audit and assurance services
338
515
HARMONEY ANNUAL REPORT FY25
66
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HARMONEY ANNUAL REPORT FY25
67
dent Auditor's Report
Parkline Place
Level 25, 252 Pitt Street
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of A.C.N. 050
110 275 Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and A.C.N. 050 110 275 Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF HARMONEY CORP LIMITED
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Harmoney Corp Limited (“the Company”) and
its subsidiaries (together, “the Group”), which comprise the consolidated statement of financial
position as at 30 June 2025, and the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the
year then ended, and notes to the consolidated financial statements, including material accounting
policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at date, and its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with New Zealand
equivalents to International Financial Reporting Standards (“NZ IFRS”) and IFRS® Accounting Standards.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (“ISAs
(NZ)”). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand)
issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Our firm carries out other assignments for the Group in relation to the review of the Group’s
consolidated interim financial statements, subsidiary audit services and regulatory assurance services.
In addition to this, subject to certain restrictions partners and employees of our firm deal with the
Group on normal terms within the ordinary course of trading activities of the business of the Group.
The firm has no other relationship with, or interests in, the Company or its subsidiaries.”
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
HARMONEY ANNUAL REPORT FY25
68
2
The valuation of Expected Credit Loss provision
Key audit matter
How the matter was addressed in our audit
The valuation of Expected Credit Loss
(‘ECL’) provision at 30 June 2025 of
$36.8m (30 June 2024 $36.6m).
Refer to Note 15 to the Financial
Report.
The ECL provision on finance
receivables is a key audit matter due
to the financial significance of finance
receivables $795.4m (30 June 2024
$724.8m). The total ECL provision is a
material balance subject to a high
degree of management judgement
and estimation including
incorporating forward-looking
information reflecting expected
future economic conditions across
New Zealand and Australia. There is
also high degree of complexity
involved in the Group’s ECL models.
Our audit work included, but was not limited to:
• Testing key controls relating to the Group’s lending
processes including controls over new loan origination;
• Critically evaluating whether the provisions
methodology and ECL model prepared by the Group
complies with the requirements of the accounting
standards;
• Developing, with the help of our ECL technical
specialists, an alternative challenger ECL model using
the observable industry data to assess whether the
Groups provision is within an acceptable range;
• Performing procedures to assess the allocation of loans
to the appropriate ECL loan staging;
• Performing procedures to assess the completeness and
accuracy of key data feeding into the ECL models; and
• Evaluating the Group’s disclosures in the consolidated
financial statements in reference to the requirements of
the accounting standards.
Other Information
The directors are responsible for the other information. The other information comprises the
Highlights, Board of Directors biographies, Chairman’s report, Chief Executive’s report, Review of
Operations, Sustainability Report, Directors’ report and disclosures relating to corporate governance,
but does not include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
HARMONEY ANNUAL REPORT FY25
69
3
Directors’ Responsibilities for the Consolidated Financial Statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for
such internal control as the directors determine is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the Group
for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the decisions of
users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at: https://www.xrb.govt.nz/standards/assurance-
standards/auditors-responsibilities/audit-report-1-1/.
This description forms part of our auditor’s report.
Who we Report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s shareholders, as a body,
for our audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Tim Aman.
BDO Audit Pty Ltd
Tim Aman
Director
Sydney, Australia
20 August 2025
HARMONEY ANNUAL REPORT FY25
70
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HARMONEY ANNUAL REPORT FY25
71
Shareholder Information
The shareholder information set out below was applicable as at 31 July 2025.
Distribution of equitable securities
Analysis of number of equitable holders by size of holding.
There were 89 holders of less than a marketable parcel of ordinary shares.
Equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Options over ordinary shares
Number of holders
% of total shares
issued
Number of holders
% of total shares
issued
1 to 1,000
121
0.05
0
0
1,001 to 5,000
214
0.60
0
0
5,001 to 10,000
110
0.82
0
0
10,001 to 100,000
220
6.93
0
0
100,001 and over
68
91.60
0
0
Total
733
100.00
0
0
Number of holders
% of total shares issued
Neil Roberts
14.77
Heartland Bank Limited
9.77
Lookman Family Trust
8.72
Trade Me Limited
7.32
J P Morgan Nominees Australia Pty Limited
6.50
HSBC Custody Nominees (Australia) Limited
6.36
Citicorp Nominees Pty Limited
4.93
Waterfall Asset Management
3.78
Brad Hagstrom, Renai Hagstrom, and Guy Hagstrom
2.63
David Stevens
2.44
Sharesies Australia Nominee Pty Limited
1.88
Australian Farmlands Pty Ltd
1.73
Monde Five Limited
1.39
Tap Capital Pty Ltd
1.30
New Tricks Limited
1.29
Andrew Cathie
1.19
Duncan Gross
1.11
Netwealth Investments Limited
1.07
Mono Lake Trustee Limited
1.10
Sheffield Management Pty Ltd
1.03
Total
80.31
HARMONEY ANNUAL REPORT FY25
72
Unquoted equity securities
Substantial holders
Substantial holders in the Company are set out below:
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and, upon a poll, each
share shall have one vote.
There are no other classes of equity securities.
Number on issue
Equity securities
on conversion
Number of holders
Performance rights
1,628,816
1,628,816
2
Name of holder
Number held
% of total shares issued
Neil Roberts
15,368,002
14.77
Heartland Bank Limited
10,161,461
9.77
Lookman Family Trust
9,069,618
8.72
Trade Me Limited
7,620,959
7.32
HARMONEY ANNUAL REPORT FY25
73
Corporate Information
For the year ended 30 June 2025
This section is presented in NZD.
NZBN 9429041215272
Directors
The following persons held office as Directors of the Company and the Company’s subsidiaries during the year ended 30
June 2025.
Harmoney Corp Limited
Monique Cairns
Paul Lahiff
John Quirk
Neil Roberts
David Stevens
Harmoney Australia Pty Ltd
Brad Hagstrom
David Nesbitt
David Stevens
Simon Ward
Harmoney Services Australia Pty Ltd
Brad Hagstrom
David Nesbitt
David Stevens
Simon Ward
Harmoney Services Limited
Brad Hagstrom
David Stevens
Simon Ward
Directors’ shareholding
Directors are not compelled to hold shares in the Company, but informally it is encouraged (provided the Trading Policy is
complied with) to align the interests of non-executive directors with those of shareholders.
HARMONEY ANNUAL REPORT FY25
74
Directors’ attendances
The following table shows the Board and Committee meetings held and the Directors’ attendances during the financial year
ended 30 June 2025.
1. Nomination and Remuneration Committee discussions were also held at Director-only sessions of Board meetings.
2. Number of meetings held during the time the Director held office or was a member of the committee.
Directors’ interests
The following are particulars of general disclosures of interest by Directors of Harmoney Corp Limited holding office at
30 June 2025, pursuant to section 140(2) of the Companies Act 1993. Where applicable, the disclosures also include
directorships of subsidiaries of the relevant companies.
Monique Cairns
30 Seconds Limited
Director
30 Seconds Pty Limited
Director
30 Seconds Group Limited
Director
BoatCo R3500-5 Limited
Shareholder
Cairns Family Trust
Beneficiary
Caribou Consulting Limited
Director and Shareholder
Ingenium NZ Limited
Director
Kaihere Trust
Trustee
Monstar Trust
Trustee and Beneficiary
The Almo Trust
Trustee and Beneficiary
The New Zealand Home Loan Company Limited
Director
The New Zealand Portrait Gallery / Te Pūkenga Whakaata
Trustee
The Northern Club
Committee Member
Younity Limited
Director
Paul Lahiff
86 400 Holdings Ltd
Director (ceased 31 December 2024)
86 400 Ltd
Director (ceased 31 December 2024)
86 400 Technology Pty Ltd
Director (ceased 31 December 2024)
Advanced Encryption Standard Migration Steering Committee
Committee Member
Lahiff Consulting Australia Pty Ltd
Director and Shareholder
NESS Super Pty Ltd
Director
P&R Lahiff Pty Ltd
Director and Shareholder
RSW Lane Cove Pty Ltd
Director and Shareholder
Sezzle Inc.
Director (ceased 21 July 2024)
Board
Audit and Risk Committee
Nomination and
Remuneration Committee 1
Attended
Held 2
Attended
Held 2
Attended
Held 2
Monique Cairns
7
7
4
4
2
2
Paul Lahiff
7
7
4
4
2
2
John Quirk
7
7
4
4
2
2
Neil Roberts
7
7
N/A
N/A
N/A
N/A
David Stevens
7
7
4
4
2
2
HARMONEY ANNUAL REPORT FY25
75
John Quirk
Aeroqual Limited
Director and Shareholder
Portainer.io Limited
Director and Shareholder
Quirk International Limited
Director and Shareholder
Television New Zealand Limited
Director
Neil Roberts
Harmoney Share Sale Company Limited
Director (ceased 18 December 2024)
Neil Roberts Business Trust
Trustee and Beneficiary
Neil Roberts Trustee Company Limited
Director and Shareholder
Roberts Family Trust
Trustee and Beneficiary
David Stevens
Harmoney Australia Pty Ltd
Director
Harmoney Services Australia Pty Ltd
Director
Harmoney Services Limited
Director
Harmoney Share Sale Company Limited
Director (ceased 18 December 2024)
The following are particulars of general disclosures of interest by Directors of Harmoney Corp Limited’s subsidiaries (other
than those who are also Directors of Harmoney Corp Limited) holding office at 30 June 2025, pursuant to section 140(2)
of the Companies Act 1993. Where applicable, the disclosures also include directorships of subsidiaries of the relevant
companies.
Brad Hagstrom
Hagstrom Family Trust
Trustee and Beneficiary
David Nesbitt
Neslan Pty Limited
Director and Shareholder
Nesbitt Family Trust
Beneficiary
Simon Ward
Monde Five Limited
Director and Shareholder
Indemnities and insurance
Pursuant to section 162 of the Companies Act 1993 and the Constitution, Harmoney Corp Limited has entered into insurance
for the directors of the Group to indemnify them, against liabilities which they may incur in the performance of their duties as
directors of any company within the Group.
Remuneration and other benefits received by Directors during the year
1. Harmoney does not offer share options, or any benefits on retirement, to non-executive directors.
Directors' fees (NZ$)1
Paul Lahiff
197,831
Monique Cairns
94,000
John Quirk
94,000
HARMONEY ANNUAL REPORT FY25
76
Employee remuneration
Harmoney paid total remuneration for FY25 in excess of NZ$100,000 in the following bands:
Donations
The Group donated NZ$1,100 during the year ended 30 June 2025 (2024: NZ$1,000). $Nil donations were made to political
parties (2024: $Nil).
Remuneration including share-based remuneration (NZ$)
Number of employees
100,000 - 110,000
4
110,000 - 120,000
7
120,000 - 130,000
1
130,000 - 140,000
3
140,000 - 150,000
8
150,000 - 160,000
6
160,000 - 170,000
5
170,000 - 180,000
2
180,000 - 190,000
4
190,000 - 200,000
2
210,000 - 220,000
1
220,000 - 230,000
2
230,000 - 240,000
1
240,000 - 250,000
2
250,000 - 260,000
1
270,000 - 280,000
1
340,000 - 350,000
1
350,000 - 360,000
1
390,000 - 400,000
1
400,000 - 410,000
1
410,000 - 420,000
1
440,000 - 450,000
1
480,000 - 490,000
1
640,000 - 650,000
1
750,000 - 760,000
1
880,000 - 890,000
1
960,000 - 970,000
1
1,270,000 - 1,280,000
1
HARMONEY ANNUAL REPORT FY25
77
Directory
Registered office
Harmoney Corp Limited
Level 3, 110 Customs Street West
Auckland 1010
New Zealand
Auditor
BDO
Level 25, 252 Pitt Street
Sydney NSW 2000
Australia
Share register
Automic Pty Ltd
ACN 152 260 814
Level 5, 126 Phillip Street
Sydney
NSW 2000
Australia
Stock exchange listing
Harmoney Corp Limited shares are listed in the Australian Securities Exchange (ASX).
Harmoney Corp Limited was admitted to the official list of the ASX on 19 November 2020 (ASX issuer code HMY).
Notice of Annual General Meeting
The Annual General Meeting of Harmoney Corp Limited will be held on 2 December 2025.
Corporate Governance Statement
https://investorhub.harmoney.com.au/governance
Harmoney websites
www.harmoney.co.nz | www.harmoney.com.au