2024 Annual Report
1
2024 Annual Report
for the year ended 30 June 2024
MoneyMe Limited and its controlled entities
ACN: 636 747 414
ASX: MME
2024 Annual Report
2
2024 Annual Report
3
Business Report ............................................................... 4
Directors’ Report.............................................................. 12
Financial Report ............................................................... 40
Additional Information .................................................... 84
Contents
2024 Annual Report
4
Business Report
2024 Annual Report
5
5
About MONEYME ....................................................................................... 7
Message from the Chair ............................................................................. 8
Message from the CEO ............................................................................... 9
Sustainability Summary .............................................................................. 11
Contents
2024 Annual Report
6
Acknowledgement of Country
MONEYME acknowledges the Traditional Custodians of the land, seas, skies, and waterways throughout Australia where we work
and live. In particular, we acknowledge the Gadigal and Awabakal peoples and communities on whose land our offices are located. We
recognise the continued connection Aboriginal and Torres Strait Islander peoples have with this Country and pay our respect to Elders
past and present.
In FY24, MONEYME completed the first stage of Reconciliation Australia’s Reconciliation Action Plan framework, Reflect. MONEYME
is committed to reconciliation and accepts the generous invitation of the Uluru Statement from the Heart, to walk with First Nations
peoples for a better future.
2024 Annual Report
7
About MONEYME
A non-bank challenger
We challenge outdated lending practices with
smart technology and innovative car loans,
personal loans and credit cards.
Digital yet personal
We simplify the borrowing experience with
digital-first products that meet the needs of
modern consumers.
We move fast
From near real-time credit decisioning to
loans that settle in minutes, saving our
customers’ time is at the core of everything
we do.
For Generation Now
We service ambitious Australians who expect
more from life and the companies they
engage with.
2024 Annual Report
8
In FY24, MONEYME successfully navigated the complexities of a higher interest rate environment and volatile funding markets to
achieve a return to growth, a better quality loan book, and a statutory net profit after tax (NPAT) of $22.7 million. These results
reflect the team’s ability to effectively execute on its strategy: extending MONEYME’s technology advantage, improving the
risk profile of the loan book by shifting to higher-quality and secured asset lending, enhancing operating leverage through more
streamlined operations, and expanding its funding program, facilitating more capital-efficient growth.
These achievements have not only driven strong full year results but also established a solid foundation for sustained profitable
growth in the years ahead. MONEYME’s commitment to innovation, automation, and exceptional customer experiences, coupled
with a focus on operating efficiency, has established the fundamentals to consistently deliver value to our customers and
strengthen our competitive advantages, even amidst ongoing macroeconomic challenges. The transition to a lower-risk loan book
has led to stronger credit performance and more favourable warehouse funding terms. The accomplishments in strengthening
MONEYME’s loan portfolio were further validated by two Moody’s credit rating upgrades during FY24.
In its first year as a Certified B CorporationTM, MONEYME deepened its environmental, social, and governance (ESG) impact. In
the context of continued inflationary pressures, MONEYME improved its support for customers facing financial hardship and
continued to provide free access to financial wellness resources. Over 115,000 users have accessed MONEYME’s free Credit
Score tool to better understand the factors influencing their credit profile, with 51.5% reporting an improvement of their credit
score since first using the tool.
The B Corp Certification provides a solid framework for future success, ensuring that MONEYME invests in impactful initiatives
that benefit both people and the planet while driving long-term business performance. Our commitment to sustainable business
practices will continue to distinguish us in a competitive market, attracting top talent, providing greater access to funding, and
resonating with the growing number of environmentally and socially conscious consumers. This globally recognised certification
also verifies that MONEYME meets high standards of transparency and accountability. Our comprehensive climate reporting
is already aligned to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, positioning us to meet
the upcoming mandatory Australian Sustainability Reporting Standards (ASRS). I strongly encourage you to read our 2024
Sustainability Report, outlining MONEYME’s ESG targets and achievements, once it is published.
I would like to extend my sincere thanks to Peter Coad, our former Chair, for his stewardship. Peter has left behind a strong governance
foundation that will support MONEYME for years to come. Additionally, we welcomed Susan Hansen as a Non-Executive Director in
December 2023. Susan’s extensive experience and expertise make her a valuable addition to our Board and the Audit & Risk Management
Committee.
I would also like to thank Clayton and the MONEYME team for all their dedication and hard work during the year. Their efforts
have ensured the company is well positioned for the future.
In closing, I am excited to chair MONEYME as we continue to challenge outdated industry practices and deliver exceptional
customer experiences. I look forward to working alongside my fellow Board members and the Management team to contribute to
MONEYME’s ongoing success and deliver long-term value to our shareholders, customers, and the broader community.
Thank you for your continued trust and support.
Sincerely,
Jamie McPhee
Chair
28 August 2024
On behalf of the Board of Directors, I am pleased to
present MONEYME’s FY24 Annual Report in my role as the
new Chair. It is exciting to join a company distinguished
by a strong culture of innovation, a dedicated and
engaged team, and a deep commitment to sustainability
and positive impact. MONEYME’s forward-thinking
approach truly sets it apart in the consumer lending
space.
Message from
the Chair
2024 Annual Report
9
Continued profitability, growth and a strengthened loan book
In FY24, MONEYME delivered a statutory NPAT of $22.7 million, an increase from $12.3 million in FY23. This growth highlights
our scale and technology advantages, stronger credit performance, and realised tax benefits. Over the past year, we have
focused on building the foundation for future growth following a period of enhancing loan book strength and streamlining
operations, allowing us to maximise operating leverage as a scaled business. Our efforts resulted in a 23.3% increase in new loan
originations, expanding our loan book to $1.2 billion.
Our strategy of targeting borrowers with strong credit profiles and increasing the proportion of secured car loans has
significantly bolstered our credit performance, leading to a reduction in credit losses to 4.5% in FY24. The average Equifax credit
score of our customers now stands at 763, with secured assets comprising 54.9% of our total loan book. While our net interest
margin (NIM) adjusted to 9.8%, down from 12.0% in FY23, this shift reflects our strategic emphasis on higher quality, lower-risk
assets.
The ability to achieve growth while maintaining profitability, alongside the uplift in the loan book’s credit profile, underscores
the strength of our value proposition and business model. These achievements are particularly noteworthy in the context of the
higher interest rate environment, affirming our resilience and strategic focus.
Innovation driving key competitive advantages
Customer-centric innovation remains at the core of MONEYME’s strategy, as evidenced by our Net Promoter Score (NPS) rising
to 69 and a Product Review score of 4.6 out of 5, far exceeding those of major banks. This high level of customer satisfaction
fosters strong customer loyalty and growth.
During the year, we made significant strides in enhancing our proprietary technology platform, Horizon, and expanding our
product offerings. A key milestone was the launch of our new mobile app, delivering a more intuitive and seamless user
experience, and an immediate uplift in app usage. With features such as a free Credit Score tool and educational content, the
app is integral to our distribution strategy. 42% of all funded loan and credit card applications in FY24 originated from the app,
creating engaging experiences and loyal customers.
We also enhanced our secured car loan product, Autopay, by speeding up application processing through high automation and
increasing the maximum loan offer to $150,000, opening up new avenues for growth and enabling us to attract high credit
quality customers.
Our ongoing investment in automation and smart technology continues to drive operational efficiencies. In FY24, we introduced
several updates to our technology platform, including the increased automation of Optical Character Recognition (OCR)
technology to speed up loan approvals and settlements. Additionally, we enhanced our credit decisioning engine with advanced
analytics, optimising for volume, pricing, and risk, setting the stage for sustainable growth.
Strong performance continues to deliver funding benefits
Our financial and operational performance enabled us to further optimise our funding program. We doubled our Autopay
warehouse funding facility from $375 million to $750 million and improved efficiencies in our warehouse funding, releasing cash
to fuel future growth. Additionally, we also received Moody’s credit rating upgrades for two of our term securitisations.
Building on these achievements, we executed a $178 million term securitisation in July 2024, marking our first public transaction
for FY25. This deal, priced competitively due to excess demand, reflects market confidence in MONEYME’s growth trajectory
and the quality of our loan portfolio.
I am pleased to present MONEYME's financial results
for 2024, showcasing our successful navigation of a
challenging higher interest rate environment. Through
disciplined execution, we have not only sustained
profitability but also enhanced the credit quality of our loan
book. Our strengthened portfolio, characterised by a higher
proportion of secured assets, positions us for sustainable
returns with reduced risk as we move forward.
Message from
the CEO
2024 Annual Report
10
Outlook for FY25 and beyond
The past year has laid a solid foundation for continued profitability and sustainable growth. FY24 marked our return to growth,
and as we move into FY25, MONEYME’s priorities are clear:
• We will extend our technology and scale advantages to grow operating leverage, ensuring we maintain a lean organisation
capable of responding swiftly to market opportunities and challenges.
• We will continue to enhance our offerings, deepen customer relationships, and expand our market presence, with Autopay as
a key growth driver.
• We are committed to our long-term growth objectives by continuing to expand our funding program, leveraging both
domestic and international debt capital markets.
I want to acknowledge the exceptional work of the entire MONEYME team. Our people are our greatest assets, the heartbeat
of our company, and I am proud to share that our employee engagement score reached 81% in FY24. Their dedication fuels our
innovation and growth, enabling us to consistently deliver exceptional experiences to our customers and partners. As we move
forward, we remain committed to fostering an environment where our high-performing team can continue to thrive.
Finally, to our shareholders, thank you for your ongoing trust and confidence. MONEYME remains focused on delivering long-
term value, and I look forward to continuing this journey together.
Yours sincerely,
Clayton Howes
Managing Director and Chief Executive Officer
28 August 2024
2024 Annual Report
11
Sustainability Summary
1Reflects the Group’s certified B Impact Assessment Score, MONEYME became a Certified B Corporation in August 2023.
2 Includes engagement survey results of labour hire staff based in the Philippines.
Measure
FY23 Actual
FY24 Ambition
FY24 Actual
FY25 Ambition
Receive B Corp Certification
N/A
Complete
by 30 June
Completed
Maintain B Corp
Certification
Governance
Representation of women on the Board
33.3%
≥30%
33.3% ( - )
≥30%
Measure performance against material ESG topics as
informed by the materiality assessment in FY23
N/A
Set KPIs
Completed
Complete FY25
materiality
assessment
Environment
Annual Scope 1 and 2 greenhouse gas (GHG)
emissions (tCO2e) compared to the targets validated
by the Science Based Targets initiative (SBTi)1
3.2
<20.4
4.1 (↑28%)
<19.2
Motor vehicle financed emissions intensity for every
million dollars of Autopay loan receivables (tCO2e/$M)2
76.0
<72.2
70.2 (↓8%)
<66.7
Review and update climate-related risk indicators
Completed
Complete
by 30 June
Completed
Complete FY25
climate risk
assessment
Employees
Staff overall engagement score3
76%
≥80%
81% (↑5)
≥80%
Representation of women in employee workforce
41.8%
≥40%
38.4% (↓3)
≥40%
Proportion of Australian employees participating in
MONEYME’s Employee Equity Incentive Plan
81.6%
≥65%
87.9% (↑6)
≥75%
Community
Number of World Vision sponsored children
supported by MONEYME and its employees
N/A
≥100
125
≥130
Number of Reflect Reconciliation Action Plan (RAP)
deliverables completed
N/A
36
36
Commence
Innovate RAP
Customers
Net Promoter Score (NPS) for the MONEYME brand
60
≥60
69 (↑15%)
≥60
Australian Financial Complaints Authority (AFCA)
customer complaints as a proportion of active
customers
0.3%
≤1%
0.5% (↑0.2)
≤1%
Number of people provided with ongoing access to
their credit score and financial wellness resources via
the MONEYME Credit Score tool
~90,000
≥100,000
>115,000
(↑28%)
≥120,000
The bracketed comparisons in FY24 Actual column indicate the change in performance from the prior period and the
and
icons indicate whether the FY24 Ambition was achieved or missed, respectively.
1 The market-based approach is the primary Scope 2 emissions calculation methodology for all the GHG disclosures that include Scope 2 emissions in the
Group’s 2024 Sustainability Report. The location-based Scope 2 figure is provided in the Estimated Operational Greenhouse Gas Emissions table in the
Environment section of the 2024 Sustainability Report.
2 Autopay is MONEYME’s car finance product, the loan receivables figure represents Autopay principal outstanding.
3 All engagement survey results throughout the 2024 Sustainability Report include results of labour hire staff based in the Philippines.
The performance highlights in the table below provide a summary snapshot of the Group’s performance across the different
areas of Sustainability at MONEYME – Governance, Environment, Employees, Community and Customers. The measures have
been selected to summarise performance and provide comparability to previous reporting periods. Refer to MONEYME’s 2024
Sustainability Report, which will be published as a separate document to the ASX on Friday 30 August 2024, for further information.
2024 Annual Report
12
Directors’ Report
2024 Annual Report
13
13
Directors' Report ......................................................................................... 14
Operating and Financial Review ............................................................. 21
Remuneration Report ................................................................................. 27
1. KMP remuneration framework and governance .............................. 27
2. FY24 remuneration changes ................................................................ 30
3. Group performance ............................................................................... 30
4. Executive KMP remuneration .............................................................. 31
5. NED remuneration ................................................................................. 37
6. KMP performance rights and share ownership ................................ 38
Contents
2024 Annual Report
14
The Directors present their report together with the Consolidated Financial
Statements and accompanying Notes of MoneyMe Limited (the Company)
and its controlled entities (the Group) for the period ended 30 June 2024
(FY24).
Information about the Directors
The following people were Directors of the Group during the financial year
and up to the date of this report. Each Director held that position from
the start of the financial year until the date of this report, unless otherwise
stated:
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Eligible To Attend
Attended
Eligible To Attend
Attended
Eligible To Attend
Attended
No.
No.
No.
No.
No.
No.
Jamie McPhee
2
2
-
-
-
-
Clayton Howes
12
12
-
-
-
-
Scott Emery
12
11
-
-
2
2
Rachel Gatehouse
12
12
4
4
-
-
Susan Hansen
5
5
-
-
-
-
David Taylor
12
11
4
4
1
1
Peter Coad
12
12
4
4
2
2
Susan Wynne
7
6
-
-
1
1
The following changes to the composition of the Audit & Risk Management Committee occurred during the financial year:
• Susan Wynne ceased to be a member of the Committee on her resignation from the Board on 29 November 2023.
• Susan Hansen was appointed to the Committee on 27 May 2024.
• Peter Coad ceased being a member of the Committee on his resignation from the Board on 1 June 2024.
The following changes to the composition of the Remuneration & Nomination Committee occurred during the financial year:
• Susan Wynne ceased to be the Chair of the Committee on her resignation from the Board on 29 November 2023.
• David Taylor was appointed as Chair of the Committee on 30 November 2023.
• Jamie McPhee was appointed to the Committee on 27 May 2024.
• Peter Coad ceased being a member of the Committee on his resignation from the Board on 1 June 2024.
• Jamie McPhee (appointed 14 March 2024)
• Clayton Howes
• Scott Emery
• Rachel Gatehouse
Jamie McPhee was appointed Chair of the Board on 1 June 2024 following Peter Coad’s resignation from the MONEYME Board.
The following table sets out the number of Directors’ meetings (including meetings of committees of Directors) held during the
financial year and the number of meetings attended by each Director (while they were a Director or committee member).
• Susan Hansen (appointed 1 December 2023)
• David Taylor
• Peter Coad (resigned 1 June 2024)
• Susan Wynne (resigned 29 November 2023)
Directors' Report
2024 Annual Report
15
Jamie McPhee
Independent Non-Executive Chair (appointed as Director on 14 March 2024)
Experience and
qualifications
Jamie is an experienced Executive and Director with over 35 years of experience in financial services. He was
Chief Executive Officer of ME Bank from 2010 to 2020. Prior to that, he served as an Executive Director of
Bendigo and Adelaide Bank and was Managing Director of Adelaide Bank. Jamie is currently a Director of G&C
Mutual Bank and Archa Limited. He was previously the Chair of SocietyOne Holdings Pty Limited (SocietyOne)
from March 2021 until its acquisition by MONEYME in March 2022. He also served on the Boards of Rural
Bank, the South Australian Cricket Association and the Melbourne Renegades.
Jamie holds an Honours Degree in Civil Engineering and an MBA from the University of Adelaide and is a
graduate of the Australian Institute of Company Directors.
Other current listed
company directorships
None
Former listed company
directorships - last 3 years
None
Special responsibilities
Chair of the Board (appointed 1 June 2024)
Member of the Remuneration & Nomination Committee (appointed 27 May 2024)
Clayton Howes
Managing Director and Chief Executive Officer
Experience and
qualifications
Clayton is a co-founder and has been the Chief Executive Officer of MONEYME and a Director of the Company
since its inception. Clayton has more than 20 years experience in the development of brands, business strategy
and innovation.
He has a strong background of executing capital strategies, building new technologies to replace legacy
processes, and fostering highly engaged and rewarding team cultures. Prior to establishing MONEYME, Clayton
spent eight years at Vodafone and Vodafone Hutchinson Australia where his roles included Head of Retail
Channels, Head of Retail Transformation, Head of Sales Strategy & Distribution Management and Commercial
Finance Manager. During this time, Clayton was responsible for strategy, finance, sales, and business
transformation. Clayton previously worked for GlaxoSmithKline in the UK within Strategic Mergers Management
and Planning.
Clayton has a Bachelor of Commerce degree (Statistics, Economics and Finance) from Oxford Brookes University.
He also has a Certificate in Business Accounting from the Chartered Institute of Management Accountants.
Other current listed
company directorships
None
Former listed company
directorships - last 3 years
None
Special responsibilities
None
1 Interests as at 1 June 2024, the date on which Peter Coad ceased to be a Director.
2 Interests as at 29 November 2023, the date on which Susan Wynne ceased to be a Director.
Information about each Director currently in office, or who held office, during FY24 are set out below.
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No.
No.
Jamie McPhee
-
-
Clayton Howes
51,825,192
12,297,934
Scott Emery
98,991,250
-
Rachel Gatehouse
-
-
Susan Hansen
-
-
David Taylor
34,015
-
Peter Coad1
1,031,326
-
Susan Wynne2
60,000
-
The following table sets out each Directors’ relevant interest in shares, debentures, and rights in shares or debentures of the
company or a related body corporate as at 30 June 2024. No Directors hold any options.
2024 Annual Report
16
Rachel Gatehouse
Independent Non-Executive Director
Experience and
qualifications
Rachel has over 30 years financial services experience across the asset finance, motor finance, retail banking,
structured lending and BNPL sectors.
Rachel’s most recent experience was in venture capital backed firms, including solar financing fintech Brighte,
where, as Chief Financial Officer and Chief Operating Officer she oversaw finance, credit, operations, and debt
funding. Previously, Rachel held Chief Financial Officer and senior finance roles at HBOS Australia and ANZ
Bank. Rachel's governance experience includes Acting Chief Executive Officer of the Australian Institute of
Company Directors and previous directorships at Landcare Australia and Capital Finance Australia Limited.
Rachel holds a Bachelor of Economics and Finance from The University of New South Wales, is qualified as a
Certified Practicing Accountant and is a graduate of the Australian Institute of Company Directors.
Other current listed
company directorships
None
Former listed company
directorships - last 3 years
None
Special responsibilities
Chair of the Audit & Risk Management Committee
Scott Emery
Non-Executive Director
Experience and
qualifications
Scott is a co-founder and has been a Non-Executive Director of the Company since 2014. Scott has over 30
years experience in establishing and successfully running property development and accommodation sector
companies across Australia. Scott is the founder and managing director of a national commercial building
company, Yarra Valley Commercial, established in 1986.
Other current listed
company directorships
None
Former listed company
directorships - last 3 years
None
Special responsibilities
Member of the Remuneration & Nomination Committee
Susan Hansen
Non-Executive Director (appointed 1 December 2023)
Experience and
qualifications
Susan brings 40 years of experience in finance, risk assessment, and governance. Susan has served as a non-
executive director at listed and non-listed companies in Australia, New Zealand, and the United Kingdom since
2001 and currently chairs the Audit Committee for several boards, including for Resimac Group Limited (ASX:
RMC), where she is presently Interim Chief Executive Officer. Beyond her directorship commitments, she is an
accomplished author, speaker, and course facilitator at the Institute of Directors in New Zealand.
Susan is a Chartered Accountant with a Bachelor of Commerce, MBA from the University of Cape Town and is a
graduate of the Australian Institute of Company Directors.
Other current listed
company directorships
Resimac Group Limited (since 25 October 2016)
Former listed company
directorships - last 3 years
The Go2 People Limited (from 22 November 2021 until 28 July 2022)
UEM Investment Trust, listed in the United Kingdom (until 16 September 2023)
Special responsibilities
Member of the Audit & Risk Management Committee (appointed 27 May 2024)
David Taylor
Independent Non-Executive Director
Experience and
qualifications
David has over 30 years of financial services experience across retail banking, payment systems,
superannuation, wholesale banking, funds management, capital markets and fintech partnerships.
From 2010 to 2021, David was the Chief Executive Officer of G&C Mutual Bank, where he remains a Director. He
previously held senior executive positions at Credit Union Services Corporation and Finance Industry Consulting
Services. David is also currently a Director of CUFSS Limited (an unlisted public company) and Shared Service
Partners Pty Limited. David was a Director of SocietyOne from March 2018 until the completion of MONEYME’s
acquisition of SocietyOne in March 2022, at which point he was appointed to the MONEYME board.
David holds a first-class Honours Degree in Political Economy from the University of Adelaide and is a graduate
of the Australian Institute of Company Directors.
Other current listed
company directorships
None
Former listed company
directorships - last 3 years
None
Special responsibilities
Chair of the Remuneration & Nomination Committee (appointed 29 November 2023)
Member of the Audit & Risk Management Committee
2024 Annual Report
17
Peter Coad
Independent Non-Executive Director (resigned 1 June 2024)
Experience and
qualifications
Peter has more than 30 years experience in domestic and international banking and is a specialist in financial
services and risk management with broad experience across financial and capital markets, fund management
and consumer finance.
Peter served in senior executive roles at National Australia Bank from 2005 to 2017 where his leadership
experience included roles as Head of Global Markets and Asset Servicing, Wholesale Banking; Chief Risk Officer,
Business Banking; and Executive General Manager of International Branches and Transformation.
Peter previously worked for the Commonwealth Bank of Australia and Chase Manhattan Bank in Australia, Asia,
and the United States where he held global and regional leadership roles in institutional banking and financial/
capital markets.
Peter is a graduate of the Australian Institute of Company Directors.
Other current listed
company directorships
None
Former listed company
directorships - last 3 years
None
Special responsibilities
Chair of the Board (resigned 1 June 2024)
Member of the Audit & Risk Management Committee (resigned 1 June 2024)
Member of the Remuneration & Nomination Committee (resigned 1 June 2024)
Susan Wynne
Independent Non-Executive Director (resigned 29 November 2023)
Experience and
qualifications
Susan has more than 20 years corporate and government experience, specialising in brand and business
development, stakeholder management, corporate affairs, and public relations.
Susan is a Non-Executive Director of Clime Investment Management Limited (ASX: CIW) and Litigation Lending
Services Limited (an unlisted public company), a graduate of the Australian Institute of Company Directors
and an Affiliate of the Governance Institute of Australia. With a strong focus on corporate social responsibility,
Susan is also National Chair of Australian Red Cross Society of Women Leaders and a member of the Sapphire
Committee focused on protecting our oceans.
Susan has also served as Mayor of Woollahra.
Other current listed
company directorships
Clime Investment Management Limited (ASX: CIW) since September 2021
Former listed company
directorships - last 3 years
None
Special responsibilities
Chair of the Remuneration & Nomination Committee (resigned 29 November 2023)
Information about the Company Secretary
Jonathan Swain was appointed as Company Secretary of MONEYME on 11 May 2021. Jonathan is a Senior Company Secretary
with Company Matters Pty Limited. He has previously worked in a range of legal, company secretarial and management roles.
Jonathan is admitted as a solicitor in New South Wales, is a Fellow Member of the Governance Institute of Australia and a
graduate of the Australian Institute of Company Directors.
Principal activities
The Group’s principal activity for the full year is to provide consumer finance.
Operating and Financial Review
An Operating and Financial Review (OFR) is being presented in a separate single, self-contained section of the 2024 Annual
Report in line with ASIC’s Regulatory Guide 247 and Instrument 2016/188 and forms part of this Directors’ Report. The
OFR provides the Group’s stakeholders with a narrative and analysis that supplements the financial report to assist with an
understanding of the operations, financial position, business strategies and prospects of the Group.
Changes in state of affairs
The Group established the MME Autopay ABS 2024-1 Trust on 25 January 2024, MME PL 2024-1 Trust on 18 May 2024 and
wound up the SocietyOne Funding Trust No. 1 on 2 July 2023 as part of its securitisation funding program.
Further, the following funding updates happened during the financial year:
• MME Autopay 2021 Trust: the facility size of the trust decreased to $375.0 million and subsequently increased to $750.0
million (inclusive of the subordinated note investments and exclusive of the senior commission note) in March 2024.
• SocietyOne Funding Trust 2: the total commitment limit increased from $210.0 million to $260.0 million (inclusive of
subordinated note investments and investments made by other controlled entities of the Group) in March 2024.
2024 Annual Report
18
Non-audit services
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are outlined in
Note 23 of the 2024 Annual Report.
The Directors are satisfied that the provision of non-audit services during the year, by the auditor, is compliant with the general
standard of independence for auditors imposed by the Corporations Act 2001 (Cth).
The Directors are of the opinion that the services disclosed in Note 23 do not compromise the external auditor’s independence,
based on advice received from the Audit & Risk Management Committee, for the following reasons:
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the
auditors; and
• None of the services undermine the general principles as set out in APES Code of Ethics for Professional Accountants issued by
the Accounting Professional and Ethical Standards Board, including reviewing, or auditing the auditor’s own work, acting in a
management or decision-making capacity for the Group, acting as advocate for the Group or jointly sharing economic risks
and rewards.
Subsequent events
On 18 July 2024, MONEYME executed a $178 million MME PL 2024-1 Trust term securitisation.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect, the
Group’s financial position as at 30 June 2024.
Future developments
The Group will continue to pursue long-term growth to achieve sound returns for shareholders. This includes growing its loan
book, investing in its core operating platform capabilities, and diversifying and expanding its funding platform to support these
initiatives.
Environmental regulations
The Group is not subject to any particular or significant environmental regulation under laws of the Commonwealth or of a State
or Territory.
Dividends
No dividend was declared or paid to the holders of fully paid ordinary shares in FY24.
Movements in options
The table below outlines the movement in all options issued by the Group for each financial year.
Further details in relation to share-based payments are outlined in Note 18 of the 2024 Annual Report.
Remuneration report
The Remuneration report forms part of this Directors’ report and includes information in relation to Director and Key
Management Personnel (KMP) remuneration, including any share options and performance rights.
Movements in performance rights
The table below outlines the movement in all performance rights issued by the Group for each financial year.
FY
Opening Balance
Granted
Cancelled
Exercised
Closing Balance
2023 (No.)
1,686,176
-
(867,490)
-
818,686
2024 (No.)
818,686
-
(818,686)
-
-
FY
Opening Balance
Granted
Cancelled
Exercised
Closing Balance
2023 (No.)
5,484,032
3,507,177
(1,439,260)
(85,000)
7,466,949
2024 (No.)
7,466,949
61,754,501
(2,492,632)
(2,866,411)
63,862,407
2024 Annual Report
19
Indemnification of officers and auditors
The Group has not indemnified or agreed to indemnify an officer or auditor of the Group or of any related body corporate
against a liability incurred as such by an officer or auditor, during or since the financial year, except to the extent permitted by
law.
Proceedings on behalf of the company
No person has applied to the court under section 237 of the Corporations Act 2001 (Cth) for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
Consolidated entity disclosure statement
Recent changes to the Corporations Act 2001 (Cth) mean that all public companies must include a ‘consolidated entity disclosure
statement’ as part of the Directors’ Report for financial years commencing on or after 1 July 2023. In accordance with this, the
below disclosure statement is added to this year’s Directors’ Report.
Name3
Date of control /
acquisition
Proportion of
ownership held by
the Group
Entity type
Place of
incorporation Location
Tax
residency
status
2024
2023
MoneyMe Limited4
11 November 2019
100%
100%
Body corporate
Australia
Australia
Australia
MoneyMe Financial Group Pty Ltd
9 May 2013
100%
100%
Body corporate
Australia
Australia
Australia
MoneyMe Finance Pty Limited5
7 November 2019
100%
100%
Body corporate
Australia
Australia
Australia
MoneyMe Technology Pty Limited
7 November 2019
100%
100%
Body corporate
Australia
Australia
Australia
MoneyMe Partnerships Pty Limited6
7 November 2019
100%
100%
Body corporate
Australia
Australia
Australia
MoneyMe International Pty Ltd7
13 October 2020
100%
100%
Body corporate
Australia
Australia
Australia
ListReady Pty Limited
29 May 2019
100%
100%
Body corporate
Australia
Australia
Australia
RentReady Pty Limited
7 May 2020
100%
100%
Body corporate
Australia
Australia
Australia
Price Enquiry Pty Limited
3 February 2021
100%
100%
Body corporate
Australia
Australia
Australia
MoneyMe TM Pty Ltd
6 December 2021
100%
100%
Body corporate
Australia
Australia
Australia
S.One SPV Pty Limited8
15 March 2022
–
100%
Body corporate
Australia
Australia
Australia
MoneyMe Employment Services Pty Ltd
(formerly SocietyOne Holdings Pty Ltd)
15 March 2022
100%
100%
Body corporate
Australia
Australia
Australia
SocietyOne Australia Pty Ltd9
15 March 2022
100%
100%
Body corporate
Australia
Australia
Australia
SocietyOne Investments Pty Ltd
15 March 2022
100%
100%
Body corporate
Australia
Australia
Australia
SocietyOne Investment Management
Pty Ltd
15 March 2022
100%
100%
Body corporate
Australia
Australia
Australia
Broker Services Pty Ltd (formerly
SocietyOne Services Pty Ltd)
15 March 2022
100%
100%
Body corporate
Australia
Australia
Australia
SocietyOne Livestock Lending Pty Ltd
15 March 2022
100%
100%
Body corporate
Australia
Australia
Australia
MME Horizon Warehouse Trust10
19 December 2018
100%
100%
Trust
Australia
Australia
Australia
MME Horizon 2020 Trust10
25 August 2020
100%
100%
Trust
Australia
Australia
Australia
MME Autopay 2021 Trust10
23 November 2021
100%
100%
Trust
Australia
Australia
Australia
MME PL Trust 2022-110
12 May 2022
100%
100%
Trust
Australia
Australia
Australia
MME Autopay ABS 2024-1 Trust10
25 January 2024
100%
–
Trust
Australia
Australia
Australia
MME PL 2024-1 Trust10
18 May 2024
100%
–
Trust
Australia
Australia
Australia
MME Share Plan Trust11
7 December 2020
100%
100%
Trust
Australia
Australia
Australia
SocietyOne Funding Trust No. 112
15 March 2022
–
100%
Trust
Australia
Australia
Australia
SocietyOne PL 2021-1 Trust10
15 March 2022
100%
100%
Trust
Australia
Australia
Australia
SocietyOne PL 2023-1 Trust10
19 May 2023
100%
100%
Trust
Australia
Australia
Australia
SocietyOne Funding Trust No. 210
15 March 2022
100%
100%
Trust
Australia
Australia
Australia
SocietyOne Personal Loans Trust13
15 March 2022
–
–
Trust
Australia
Australia
Australia
ListReady (NZ) Pty Limited
14 April 2020
100%
100%
Body corporate
New
Zealand
New
Zealand
New
Zealand
MoneyMe Financial Group (UK) Limited
21 October 2020
100%
100%
Body corporate
United
Kingdom
United
Kingdom
United
Kingdom
3 No entity within the Group is either a partner in a partnership or a participant in a joint venture.
4 MoneyMe Limited is the Parent Company of the Group.
2024 Annual Report
20
Jamie McPhee
Chair
28 August 2024
Clayton Howes
Managing Director and Chief Executive Officer
28 August 2024
Auditor
Grant Thornton Audit Pty Ltd has been appointed in accordance with section 327 of the Corporations Act 2001 (Cth).
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 (Cth) is set out as
part of the 2024 Annual Report.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001 (Cth).
Signed in accordance with a resolution of the Directors.
5 Owns the residual income units relating to MME Horizon Warehouse Trust, MME Horizon 2020 Trust, MME Autopay 2021 Trust, MME PL Trust 2022-1,
MME Autopay ABS 2024-1 Trust, MME PL 2024-1 Trust and SocietyOne PL 2023-1 Trust, and also owns 100% of the shares of MoneyMe TM Pty Limited.
6 Owns 100% of the shares of ListReady Pty Limited, RentReady Pty Limited, ListReady (NZ) Pty Limited and Price Enquiry Pty Limited.
7 Owns 100% of the shares of MoneyMe Financial Group (UK) Limited.
8 On 8 September 2023, S.One SPV Pty Limited was voluntarily deregistered after an application by the Group to the Australian Securities and Investments
Commission (ASIC). S.One SPV Pty Limited’s exit from the Group has no impact on the Group’s financial results..
9 Owns the residual income units relating to SocietyOne PL 2021-1 Trust and SocietyOne Funding Trust No. 2. SocietyOne Australia Pty Ltd is also the trustee
of SocietyOne P2P Lending Trust.
10 Ownership reflects capital and residual income unit ownership.
11The purpose of the Trust is to support management of the MME Employee Equity Incentive Plan.
12 SocietyOne Funding Trust No. 1 was terminated on 2 July 2023. The trust’s termination reflects the transfer of assets from SocietyOne Funding Trust No. 1
to SocietyOne PL 2023-1 Trust as part of the planned term-out.
13 The Group holds assets on trust for investors in the SocietyOne Personal Loans Trust. The Group holds no units in SocietyOne Personal Loans Trust, however,
has power over the relevant activities of the structured entity. The Group is exposed to variable returns from its involvement in the structured entity and has
the ability to affect its returns, therefore the Group consolidates the structured entity in the financial statements. The trust is a Structured Entity such that
voting or similar rights are not the dominant factor in deciding who controls the entity.
2024 Annual Report
21
Business overview
Founded in 2013, MONEYME is a digital lender and Certified B Corporation,
committed to lead the future credit experience with innovative technology.
Leveraging its proprietary technology platform, MONEYME delivers smart,
fast and flexible consumer lending products including secured car loans,
personal loans, and credit cards.
With a gross loan book balance of $1.2 billion as at 30 June 2024,
MONEYME has grown more than eight-fold since its ASX listing in
December 2019. The acquisition of SocietyOne in 2022 further strengthened MONEYME’s growth trajectory, driving an
immediate $0.4 billion uplift in loan assets and ongoing growth through broker relationships and technology harmonisation.
MONEYME has a track record of delivering statutory profits, and is pleased to report a statutory net profit after tax (NPAT) of
$22.7 million in FY24, building on the $12.3 million statutory NPAT achieved in FY23. The Group’s lending is funded through
warehouse and term securitisation facilities, supported by a working capital debt facility and operating cash flows.
With its current scale and focus on high quality assets, MONEYME is well-positioned to deliver steady, profitable growth in the
years ahead.
Operational review
MONEYME extended its technology advantage in FY24
MONEYME continued to elevate its operations and customer experiences through focused automation and innovation in FY24.
Key advances in our product portfolio and Horizon technology platform include:
• Increased digitisation and automation: We further enhanced the digitisation and automation of customer onboarding
journeys and credit decisioning processes, driving significant improvements in operating efficiency. This included the expanded
use of Optical Character Recognition (OCR) technology, faster decisioning and loan settlement for car and personal loans, and
enhanced biometric identity verification.
• Advanced credit decisioning engine: Our credit decisioning engine was upgraded with advanced analytics, optimising for
pricing, risk and yield, ensuring more precise and efficient outcomes.
• Launch of new mobile application: We introduced a new mobile application featuring additional functionality and an improved
user experience, leveraging the speed and cost efficiencies of our proprietary Horizon platform.
• Expansion of Autopay secured car loans: We extended our product offering to include Autopay secured car loans up to
$150,000, opening new distribution channels attracting high credit quality customer segments.
• Streamlined operations and customer experience: We successfully consolidated and streamlined end-to-end operations and
customer experiences across all products and brands within the Horizon platform.
• Development of a new credit card product: We completed the back-end build of a new credit card product and initiated a
staff pilot, setting the stage for a broader roll-out.
• Generative AI for customer service: We began developing an internal application leveraging generative AI to enhance the
speed and accuracy of customer service interactions. A beta version is currently in testing and is scheduled to launch in FY25.
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MONEYME’s commitment to delivering fast, convenient, and high-quality customer experiences has continued to drive strong
customer satisfaction. In FY24, MONEYME’s customer Net Promoter Score (NPS) increased to 69, up from 60 in FY23, reflecting
the positive impact of our customer focused initiatives. Additionally, our Product Review score reached 4.6 out of 5, significantly
outperforming the major banks' average rating of 1.2 out of 5.
Our dedication to service excellence is further demonstrated by our efficiency in responding to customer inquiries, with over 70%
of calls answered within 10 seconds. The level of responsiveness not only enhances customer engagement but also supports our
strong NPS and product reviews. Moreover, ~30% of MONEYME’s customers now hold two or more products, underscoring
deepening customer relationships.
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MONEYME’s focus on higher credit quality and secured assets has significantly improved the composition of our loan book,
resulting in better credit performance. Net credit losses reduced to 4.5% in FY24, down from 5.8% in FY23.
Operating and
Financial Review
2024 Annual Report
22
The credit quality of our customer base lifted, with the average Equifax credit score rising from 727 at the end of FY23 to 763 by
the end of FY24. The proportion of secured assets increased to 54.9% of the total loan book as at 30 June 2024 (30 June 2023:
43.7%), highlighting our strategic focus on secured asset lending.
In FY24, we enhanced our debt collections and recovery processes by increasing personnel, providing frequent staff training,
redesigning communication flows, and implementing other initiatives. Early-stage collection processes were migrated from an
outsourced agency to our proprietary Horizon technology platform, enabling timelier customer engagement and better outcomes.
Our customer base is geographically aligned with the Australian population, with an industry-sector concentration of less than
10% across all employment sectors, and a median customer age of 38. As at 30 June 2024, 56.8% of our loan book assets have
more than 48 months remaining on their contractual terms. This diversification reduces risk and contributes to a resilient loan
book.
FY24, like FY23, was a challenging period for both financiers and consumers due to higher interest rates and tightening credit
conditions. In response, MONEYME adjusted customer pricing for its variable rate products, which constituted 77.1% of the loan
book as at 30 June 2024, to maintain a net interest margin (NIM) of 9.8%.
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MONEYME has continued to lay foundations for growth in FY24, with key milestones achieved:
• Warehouse financing renewals executed, with the MME Autopay 2021 Trust, MME Horizon 2020 Trust and SocietyOne
Funding Trust No. 2 extended as planned.
• The set-up of the MME PL 2024-1 Trust, which saw the execution of a new $178 million term securitisation in July 2024.
• The product portfolio was simplified and enhanced with improvements to core products, while new business for non-core
products was phased out.
• Channel distribution was optimised through improvements to the direct-to-consumer channels, referral programs and broker
channels.
MONEYME also invested in growing its market presence during FY24. In March 2024, it launched a brand campaign in partnership
with the Seven Network, leveraging prepaid media spend from the SocietyOne acquisition in March 2022. The ‘Kick your
goals’ campaign, running throughout the 2024 AFL season, includes a series of TV commercials and digital integrations to raise
awareness of the MONEYME brand across one of Australia’s most popular sports.
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MONEYME acknowledges that as a credit provider it has an important role to play in promoting financial access and inclusion to
its customers. In FY24, more than 115,000 customers have accessed MONEYME’s free Credit Score tool, up from ~90,000 as at
30 June 2023. 51.5% of users has experienced an improvement in their credit score since first using the tool, compared to 48.9%
in FY23, demonstrating the positive impact the tool is having on customers’ financial wellness.
MONEYME recognises the shifting needs of, and challenges faced by, its customers and is committed to acting fairly and
responsibly in assessing their financial circumstances. MONEYME has continued to evolve its comprehensive hardship program to
provide a tailored approach to support vulnerable customers and those experiencing financial hardship.
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MONEYME achieved B Corp Certification in August 2023 with an impressive B Impact Assessment score of 91.2, significantly
surpassing the 80-point certification threshold. This certification underscores our strong governance practices and our ongoing
commitment to making a positive impact on the environment, society, customers, and employees. The B Corp Certification
provides an internationally recognised framework for measuring and verifying environmental, social and governance (ESG)
performance, instilling confidence in MONEYME’s sustainability initiatives among all stakeholders.
Key ESG operational highlights from the financial year include:
• New charity partnership with World Vision: In February 2024, MONEYME launched a new partnership with World Vision,
sponsoring vulnerable children on behalf of every employee, reinforcing our commitment to social responsibility.
• Proactive climate-related financial disclosure preparation: Anticipating mandatory climate-related financial disclosure
legislation, we completed an internal gap analysis against the draft Australian Sustainability Reporting Standards (ASRS) in
FY24. This proactive approach ensures that MONEYME is well-prepared to comply with the new standards when required,
which the Group expects will be from FY27 onwards.
• Reconciliation Action Plan (RAP) – !;Y;1| phase completion: MONEYME successfully completed the first phase of its RAP,
Reflect. This initiative involved enhancing employee understanding and appreciation of First Nations history and culture, as well
as developing sustainable relationships with local communities.
• Modern Slavery Statement: MONEYME’s latest Modern Slavery Statement was published in January 2024. In FY24, the
Group further enhanced its modern slavery risk assessment processes for suppliers and engaged with key suppliers to ensure
alignment with our ethical standards.
For more detailed information on MONEYME’s ESG agenda, please refer to the Group’s FY24 Sustainability Report (released to the
market on 30 August 2024) and the Sustainability Summary in the Annual Report.
2024 Annual Report
23
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In FY24, MONEYME placed significant emphasis on strengthening its information security frameworks:
• Enhanced threat detection and response: The Group implemented a full-stack Managed Detection and Response (MDR)
solution to improve threat detection, prevent data breaches, and automate threat responses.
• AI-powered cybersecurity: We deployed advanced AI-powered cybersecurity software designed to neutralise phishing and
ransom-ware attacks in real-time.
• Employee cybersecurity training: We intensified cybersecurity training for all employees, incorporating regular phishing
simulations to increase awareness and preparedness.
• Automated disaster recovery: We introduced automated disaster recovery processes to minimise outage times and streamline
the recovery of critical systems.
Financial review
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The Group delivered a statutory NPAT of $22.7 million in FY24, up $10.4 million or 85.0% from the FY23 result of $12.3 million.
This was primarily achieved through an increase in credit quality, resulting in lower losses and provisions, as well as the recognition
of tax benefits that will be realised in the medium term.
2024
2023
Change
Change
$’000
$’000
$’000
%
Gross revenue
214,146
238,877
(24,731)
(10.4%)
Interest expense
(98,472)
(89,805)
(8,667)
(9.7%)
Operating expenses
(48,158)
(51,964)
3,806
7.3%
Loan receivable impairment expense
(34,385)
(67,543)
33,158
49.1%
Income tax benefit
10,338
-
10,338
100.0%
Other1
(20,744)
(17,279)
(3,465)
(20.1%)
Net profit after tax
22,725
12,286
10,439
85.0%
1 ‘Other’ comprises commission expense; and depreciation and amortisation expense.
Gross revenue
The $24.7 million or 10.4% decrease in gross revenue compared to FY23 result reflects a lower average
loan book due to the earlier moderated growth strategy and the transition to higher credit quality and
secured assets with a lower income yield and an improved expected credit loss (ECL) profile.
Interest expense
The $8.7 million or 9.7% increase in interest expense compared to FY23 primarily reflects the full year
impact of the Reserve Bank of Australia (RBA) cash rate increases during FY23 and in 1H24.
Operating expenses
Operating expenses comprise sales and marketing, product design and development, and general and
administrative expenses. Total operating expenses were 7.3% lower in FY24 compared to FY23. This
reduction aligns with the Group’s strategy to manage costs effectively.
Loan receivable
impairment expense
The Group’s loan receivable impairment expense was $34.4 million in FY24 compared to $67.5 million
in FY23. The lower charge in FY24 reflects the combined impact from a reduction in net losses (down
17.8% from the FY23 result) and lower ECL provisioning to gross loan receivable ratio (at 4.7% for 30
June 2024, from 6.6% at 30 June 2023). The reduction reflects the Group’s improved credit quality
across all products and the shift towards secured assets.
The FY24 loan receivable impairment expense also reflects debt sales and recoveries of $23.5 million
(FY23: $29.7 million).
Income tax benefit
The $10.3 million release of income tax benefit is a reflection of future probable taxable profits of the tax
consolidated Group. This is driven by:
• the profit reported by the Group in the last two financial years;
• the momentum in loan receivable originations that is expected to continue;
• the contracted revenue associated with the Group’s loan receivables; and
• a continued increase in the credit quality of the loan book.
2024 Annual Report
24
Cash and cash
equivalents
Consolidated cash and cash equivalents decreased to $73.6 million as at 30 June 2024, from $91.7
million as at 30 June 2023. The change reflects an overall reduction of cash reserve requirements in the
Group’s warehouse funding from the transition to secured assets with lower risk.
Gross loan receivables
Gross loan receivables increased by $68.9 million or 6.0%, reflecting the Group’s shift to sustainable
and profitable growth. The majority of this growth was seen in the second half of FY24 and a significant
proportion came from secured auto lending.
Principal originations increased in FY24 ($574.5 million) compared to FY23 ($466.0 million).
Management anticipates that this growth will continue as the business executes on its growth strategy
with an expanded product offering, optimised distribution, and enhanced credit decisioning.
Loan receivable
provisioning
Loan receivable provisioning was 4.7% of gross loan receivables at 30 June 2024 (30 June 2023: 6.6%).
The 30 June 2024 provision position follows a review of the credit risk model and updates to consider
expected asset performance into the projected macroeconomic environment. The reduction also reflects
model updates to include asset performance over the financial year, as the Group’s credit quality across
all products continued to improve.
Borrowings
Borrowings increased by 4.6% between 30 June 2023 and 30 June 2024 broadly in line with the growth in
the Group’s gross loan receivables, to help support increased originations growth during the financial year.
Intangible assets
(including Goodwill)
Goodwill of $63.5 million held from the SocietyOne acquisition has been reviewed for impairment
and remains unchanged. Other SocietyOne acquired intangibles had a closing written down value of
$17.1 million as at 30 June 2024, reducing from prior year's closing value of $22.7 million reflecting
amortisation during the year. The Group has also continued to invest in its internally generated intangible
assets, with $11.8 million of internally generated intangible assets held by the Group at 30 June 2024,
increasing from $10.0 million at 30 June 2023.
Strategy and outlook
Looking ahead to FY25, MONEYME anticipates continued loan book growth, harnessing scale advantages and technological
efficiencies that will enhance operating leverage and deliver profitable returns.
MONEYME’s key strategies include:
• Extending technology leadership: We aim to further our technology advantage by increasing automation and integrating more
AI innovations. These efforts will enhance customer experiences and drive greater operational efficiencies.
• Focusing on high credit quality and secured assets: We will continue to prioritise high credit quality and secured assets,
leveraging our fast distribution capabilities, strong customer value proposition, and the growing demand for our Autopay
secured car loan product.
• Expanding and optimising funding programs: To support capital-efficient growth, we will expand and optimise our funding
programs. This includes executing additional term securitisations, which are expected to be completed during FY25.
• Modelling strong ESG practices: As a Certified B Corporation, MONEYME is committed to demonstrating strong ESG practices.
This commitment serves as a key differentiator for environmentally and socially conscious customers, investors, and partners.
• Product innovation and expansion: We aim to launch a new credit card product with more attractive payment terms and
features, targeting a higher credit quality segment with significant growth opportunity. We are also exploring direct-to-consumer
distribution for Autopay as an avenue for growth.
Management is confident that by focusing on these strategic priorities, the Group will be well positioned to capitalise on
significant market opportunities within the car loan, personal loan, and credit card sectors in FY25 and beyond.
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The Group’s net assets were $189.9 million as at 30 June 2024 compared to $166.1 million as at 30 June 2023. The year-on-year
movement is illustrated in the table below and supported by the items noted after the table.
30 June 2024
30 June 2023
Change
Change
$’000
$’000
$’000
%
Cash and cash equivalents
73,630
91,714
(18,084)
(19.7%)
Gross loan receivables
1,218,591
1,149,646
68,945
6.0%
Loan receivable provisioning
(56,792)
(75,993)
19,201
25.3%
Borrowings
(1,166,711)
(1,115,421)
(51,290)
(4.6%)
Intangible assets (including Goodwill)
92,340
96,267
(3,927)
(4.1%)
Other2
28,830
19,850
8,980
45.2%
Net assets
189,888
166,063
23,825
14.3%
2 ‘Other’ comprises derivative financial instruments; other receivables; deferred tax asset; right-of-use assets; property, plant and equipment; other payables;
lease liabilities; and employee-related provisions.
2024 Annual Report
25
Key risks
MONEYME is exposed to a broad range of strategic, financial and non-financial risks. These key risks are identified and managed
in accordance with the Group’s Risk Appetite Statement, which is regularly monitored and updated by management to ensure
alignment with our strategic objectives.
The Directors recognise the importance of monitoring these risks and are actively engaged in managing them. This proactive
approach allows the business to execute its strategy with confidence.
Risk
Description
Management of risk
Credit risk
The Group defines credit risk as the risk that its customers
may not pay the principal, interest, and fees owing to
MONEYME under their contract. This could result in a
decrease in revenue and operating cash flows and an
increase in expenses (including impairment expenses). If
MONEYME’s exposure to losses is higher than expected,
it will have a material effect on its expected profitability.
MONEYME manages credit risk by taking a responsible
approach to lending activities, including significantly
increasing its investment in underwriting, monitoring, and
collections. Enhanced underwriting practices ensure more
accurate assessments of borrower creditworthiness, while
improved monitoring processes help identify potential
risks early.
MONEYME’s Chief Credit Risk Officer has primary
responsibility for credit risk management, with oversight
by the Credit Committee and Board of Directors.
Funding and
liquidity risk
MONEYME’s ability to write new loans on favourable
terms and continue as a going concern depends on the
performance of its loan book and its ability to access
funding on acceptable terms. Specific funding-related risks
include the extent to which MONEYME can:
• extend the financing term or increase the funding
capacity of its existing warehouse trusts beyond their
existing arrangements on favourable or required terms;
• enter into new warehouse facilities or other funding
arrangements sufficient to meet its business
requirements; and/or
• continue to comply with the terms of its funding
facilities.
The financial statements have been prepared on a going
concern basis, the continuity of normal business activities
and the realisation of assets and settlement of liabilities in
the normal course of business.
Liquidity risk is managed through the monitoring of cash
flow forecasts to actuals to ensure that liability obligations
are met when they fall due. The Group’s balance sheet
shows an excess of assets over liabilities as at 30 June
2024 of $189.9 million (30 June 2023: $166.1 million),
with the Group having access to $565.3 million (30
June 2023: $446.3 million) in committed undrawn debt
facilities to fund continued growth of the loan portfolio.
The Group’s cash flow forecast demonstrates 12 months
of continued operations with access to sufficient funds
from operating cash flows and securitisation funding
arrangements.
MONEYME’s Group Treasurer has primary responsibility
for liquidity risk management, with oversight by the Asset
& Liability Committee and Board of Directors.
Technology and
cyber security
risk
By their nature, information technology systems are
susceptible to security threats, including cyber-attacks and
other unauthorised access to data and information. Any data
security breaches or MONEYME’s failure to protect private
customer information (including through cyber-attacks)
could significantly disrupt MONEYME’s operations, causing
reputational damage, loss of system integrity and breaches
of MONEYME’s obligations under applicable laws. This in
turn could have a material adverse impact on its business,
operating and financial performance, and reputation.
MONEYME is dependent on its proprietary technology
platform, Horizon to deliver access to finance for its
customers, collect payments from customers and to
accurately price credit risk. Horizon may experience
downtime or interruption due to system failures,
service outages, corruption of information technology
network or information systems as a result of computer
viruses, bugs, worms, or cyber-attacks, as well as natural
disasters, fire, power outages or other events outside
the control of MONEYME. Any systemic failure could
cause significant damage to MONEYME’s reputation, its
ability to make informed credit decisions and assess the
credit performance of its loan book, its ability to service
customers in a timely manner, retain existing customers
and generate new customers, any of which could have
a materially adverse impact on MONEYME’s business,
operating and financial performance, and/or growth.
The Group expects to continue to make significant
investments to support ongoing improvement in IT
controls. This includes addressing risks and issues
identified through regular external and internal audits,
and planning that sets a clear and control-prioritised
IT development roadmap to support the next phase of
strategic growth.
MONEYME’s Chief Technology Officer has primary
responsibility for technology and cyber security risk
management, with oversight by the Operational Risk &
Compliance Committee and Board of Directors.
2024 Annual Report
26
Regulatory and
compliance risk
The risk of failure to comply with regulatory obligations
overseen by our regulators.
The risk may also present as an inadequate response to
changes in laws, regulation, policies and industry codes
relevant to MONEYME’s operations.
The Group maintains a compliance management
system designed to identify, assess, report and manage
compliance risk, and regulatory requirements are
embedded across relevant MONEYME policies and
frameworks.
MONEYME’s General Counsel has primary responsibility
over the Group’s regulatory and compliance risk,
with oversight by the Operational Risk & Compliance
Committee and Board of Directors. MONEYME also
maintains transparent relationships with all of its
regulators.
Operational
risk
Operational risk is the risk of loss resulting from
inadequate or failed internal processes, people, systems,
and external events.
Operational risk covers a broad spectrum of risk areas
across MONEYME from the conduct of our people
in accordance with MONEYME’s values and Code of
Conduct, to the management and monitoring of our third-
party service providers.
Operational risk is managed through a broad set of
activities, policies and frameworks including the ongoing
monitoring and effectiveness testing of MONEYME’s
control environment, as well as regular reporting and
monitoring of third-party service providers, and key risk
indicators and events.
MONEYME’s General Counsel has primary responsibility
over the Group’s operational risk, with oversight by the
Operational Risk & Compliance Committee.
2024 Annual Report
27
Remuneration
Report
1. KMP remuneration framework and governance
1.1 Introduction
The Remuneration Report for the year ended 30 June 2024 (FY24) forms
part of the Directors' Report. This report outlines MONEYME’s FY24
remuneration strategy, framework, and outcomes, for Non-Executive
Directors (NEDs), Executive Directors and other Key Management
Personnel (KMP), prepared in accordance with the requirements of
KMP1
KMP type
Positions held
Term of Directorship
Jamie McPhee2
NED
Independent Non-Executive Chair
Remuneration & Nomination Committee - Member
Part year
From 14 March 2024
Clayton Howes
Executive KMP
Managing Director (MD) & Chief Executive Officer (CEO)
Full year
Scott Emery
NED
Non-Executive Director
Remuneration & Nomination Committee - Member
Full year
Rachel Gatehouse
NED
Independent Non-Executive Director
Audit & Risk Management Committee - Chair
Full year
Susan Hansen
NED
Non-Executive Director
Audit & Risk Management Committee - Member
Part year
From 1 December 2023
David Taylor
NED
Independent Non-Executive Director
Audit & Risk Management Committee - Member
Remuneration & Nomination Committee - Chair
Full year
Peter Coad
NED
Independent Non-Executive Chair
Audit & Risk Management Committee - Member
Remuneration & Nomination Committee - Member
Part year
To 1 June 2024
the Corporations Act 2001. This report also includes additional information intended to provide shareholders with a deeper
understanding of MONEYME’s remuneration framework, governance and practices.
The performance of MONEYME depends upon the Group’s ability to attract, motivate, and retain high-quality executive talent.
KMP are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Group,
directly or indirectly, which includes the Board of Directors (Board). To this end, the remuneration strategy and framework outlined
in this report is designed to deliver:
• competitive remuneration aimed at attracting and retaining a high calibre executive team;
• a clear alignment between remuneration and strategic objectives;
• a focus on creating sustainable value for all of our stakeholders; and
• merit-based remuneration across a diverse workforce.
MONEYME’s Remuneration & Nomination Committee (RNC) is responsible for reviewing compensation arrangements for the KMP.
The RNC assesses the appropriateness of the nature and amount of remuneration for KMP on a periodic basis by reference to
relevant market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high-quality
board and executive team. The RNC makes recommendations to the Board to support its review and approval of remuneration
arrangements.
The Executive KMP remuneration framework is designed to support the Group’s reward philosophies and to underpin the Group’s
growth strategy. The framework comprises the following components:
• Fixed Annual Remuneration (FAR) appropriate to position and experience;
• Short-Term Incentives (STI); and
• Long-Term Incentives (LTI).
The Board will continue to review KMP packages by reference to the Group’s performance, individual performance and comparable
information from industry sectors and other listed companies in similar industries.
1.2 KMP
2024 Annual Report
28
Remuneration principles
Executive KMP remuneration framework
1.3 Remuneration framework
MONEYME aims to ensure alignment between executive remuneration arrangements and shareholder returns and to disclose
such arrangements in a transparent manner. The MONEYME remuneration framework balances rewarding individuals for their
efforts in the immediate term and incentivises individuals to deliver on the Group’s long-term goals.
A summary of MONEYME's remuneration strategy is outlined below.
1 Refer to the Directors’ Report for further information relating to the Directors.
2 Jamie McPhee was appointed as a Director of the Group on 14 March 2024. He was further appointed as the Chair of the Board on 1 June 2024,
following Peter Coad’s resignation.
Fixed annual
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FAR is set at a competitive level to
our peers, enabling us to attract
and retain key employees.
By setting STI performance
conditions that align to the
achievement of the Group’s growth
strategy, the aim is to reward
employees when the Group’s
objectives are attained.
The grant of equity awards
(subject to performance
conditions) aims to align Executive
KMP with shareholders and
motivate executives towards the
achievement of the Group’s long-
term goals.
To ensure our remuneration
framework enables MONEYME
to reward, retain and motivate key
employees.
To link the remuneration of key
employees to the creation of
long-term sustainable shareholder
value and align their interests to
shareholders through the grant of
equity awards.
To enable executives to share in
the future growth of the Group
and incentivise executives to focus
on the achievement of the Group’s
long-term goals.
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Susan Wynne
NED
Independent Non-Executive Director
Remuneration & Nomination Committee - Chair
Part year
To 29 November 2023
Neal Hawkins
Executive KMP
Chief Financial Officer (CFO)
Part year
To 28 February 2024
David Wright
Executive KMP
Chief Financial Officer (CFO)
Part year
From 13 March 2024
2024 Annual Report
29
1.4 Remuneration governance
The Board of MONEYME is responsible for evaluating and approving the remuneration arrangements of MONEYME’s KMP. The
Board seeks advice and guidance from the RNC as appropriate to discharge this responsibility.
The diagram below outlines how the Board interacts with internal and external stakeholders of the Group.
1.5 Other related information
Under the Group’s Securities Trading Policy, there are clear restrictions on the trading of MONEYME shares where a person
is in possession of price sensitive information that is not generally available. This Policy applies to all KMP and also prohibits
individuals from entering into ‘protection arrangements’, which includes hedging the risk of their MONEYME shareholding
(including unvested equity awards). A copy of the Group’s Securities Trading Policy is available on the MONEYME website.
o-u7
Ultimately responsible for the active oversight of the remuneration framework and its effective operation. It may delegate
the design, operation and monitoring of the remuneration framework to the Remuneration & Nomination Committee.
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Responsible for assisting the Board to discharge
its responsibilities relating to the Executive KMP
remuneration framework and outcomes, and
Non-Executive Director remuneration.
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Institutional investors and proxy advisors to
be consulted on the Group’s remuneration
arrangements, to ensure their feedback is
received.
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Remuneration advisors may be appointed by
the Remuneration & Nomination Committee or
management to provide external advice. In FY24,
an external benchmarking exercise was provided
to the Committee to help inform remuneration
decisions.
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Responsible for providing the required
information to the Committee to support their
decision-making. Management may engage
external remuneration advisors from time-to-time
to provide advice.
2024 Annual Report
30
2. FY24 remuneration changes
During FY24, the Group made the following changes to its remuneration framework and disclosures:
• Enhanced transparency of MONEYME’s STI outcomes: Details on the STI measures and outcomes are shown in section 4.1.2.
• Changes to the LTI structures, measures, and targets: As MONEYME matures to become a company with sustainable growth,
the Group has moved away from revenue growth being the primary measure in the LTI to cash net profit after tax (Cash NPAT),
alongside relative total shareholder return (TSR) and strategic initiatives. Further, from the FY24 LTI issuance, the Group has
introduced a LTI outcome that is based on performance over two 1-year periods. The Group has also introduced weighting and
a cliff threshold for the vesting of LTI awards, to align more closely with market practice and remove the previous ‘all or nothing’
vesting scenario. Details on the LTI structures, measures and targets are shown in sections 4.1.2 and 4.2.3.
• Increase to the CEO’s remuneration package to ensure competitiveness with sector peers and recognise Clayton Howes'
criticality to the Company's long-term success: Following a review of the CEO’s remuneration during the year, including
undertaking a benchmarking exercise, an increase was approved by the Board:
-
in light of the benchmarking exercise, which indicated that Clayton Howes’ total remuneration was lower than his peers in
the fintech and non-bank lending sectors;
-
to rebuild the longer-term retention component for Clayton Howes for the next 3-4 years, given his importance to the
achievement of the Company’s long-term strategy as the Founder of MONEYME; and
-
to increase alignment with the long-term interests of shareholders by weighting his new package more heavily on the LTI
component.
Refer to sections 4.1.1 and 4.2.1 for further details on Clayton Howes’ FY24 remuneration package.
3. Group performance
FY24 was another strong year for the MONEYME Group, despite challenging market conditions characterised by inflationary
pressures and rising interest rates. The Group’s execution has been exemplary, as we continue our transition toward sustainable
profitability. We have successfully de-risked our loan book by enhancing credit quality and increasing the proportion of secured
assets.
In addition to these financial achievements, we have strengthened our data security, maintained leading levels of customer
satisfaction, and laid the groundwork for future growth. Our focus on credit management, the growth in loan receivables and
revenue, innovative breakthroughs, and the realisation of scale benefits has positioned the business well for the next year.
The key Group performance highlights for FY24 include:
• Gross revenue $214.1 million (FY23: $238.9 million).
• Gross loan receivables $1.2 billion (30 June 2023: $1.1 billion).
• Improved credit profile with an average credit score3 of 763 (30 June 2023: 727).
• Statutory NPAT of $22.7 million (FY23: $12.3 million).
• Doubling our funding facility for the MME Autopay 2021 Trust from $375 million to $750 million, allowing improved efficiency
of capital allocation and risk adjusted returns.
The tables below summarise the consolidated entity’s earnings and movements in shareholder value for the 5 years to 30 June
2024. This represents the full period since the Group was listed on the Australian Stock Exchange (ASX). It is noted that the
Group has not paid any dividends since it listed in 2019.
FY24
FY23
FY22
FY21
FY20
Gross revenue ($'000)
214,146
238,877
143,073
57,575
47,671
Net profit / (loss) before tax ($'000)
12,387
12,286
(47,782)
(10,032)
(119)
Net profit / (loss) after tax ($'000)
22,725
12,286
(50,364)
(7,929)
1,299
FY24
FY23
FY22
FY21
FY20
Share price at the start of the financial year ($)
0.08
0.70
2.35
1.18
N/A4
Share price at the end of the financial year ($)
0.06
0.08
0.70
2.35
1.18
Basic earnings per share (cps)
2.9
3.8
(26.4)
(4.7)
1.0
Diluted earnings per share (cps)
2.9
3.8
(26.4)
(4.7)
1.0
3 This figure denotes the weighted average Equifax credit score.
4 MONEYME listed on the ASX on 12 December 2019 at $1.25.
2024 Annual Report
31
4. Executive KMP remuneration
4.1 Remuneration framework
To ensure good governance, MONEYME maintains a strong link between Group performance and remuneration outcomes.
For Executive KMP, the remuneration package comprises fixed annual remuneration (FAR) and at-risk remuneration (STI and LTI)
as summarised for FY24 in the diagram below.
LTI5
STI
FAR
LTI6
5 Represents the LTI structure provided to Executive KMP for FY23 and prior.
6 Represents the LTI structure provided to Executive KMP from FY24. It is noted that since David Wright began in his role as CFO of the Group in March
2024, it was determined that he would not be assessed on FY24 performance outcomes, but rather his full LTI allocation would be assessed as part of the
FY25 performance review.
The performance assessment periods for remuneration incentive structures provided to Executive KMP in FY24 are as follows:
• STI: FY24 (one financial year).
• LTI: FY24-FY25 (two financial years – with 50% assessable at the end of FY24 and 50% assessable at the end of FY25), while
an exercise restriction applies until the end of FY26.
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The FY24 remuneration mix for MONEYME’s CEO and CFO is displayed below at maximum opportunity levels based on their
full-year contractual package. Note that the CFO remuneration mix shows David Wright’s full year remuneration package as
detailed in section 4.1.2.
56%
FAR
STI
LTI
MD & CEO
CFO
41%
22%
30%
22%
29%
2024 Annual Report
32
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FAR
Description
FAR is set at a competitive level to attract and retain high-quality and experienced Executive KMP
for MONEYME. FAR comprises of base salary, additional benefits, and superannuation contributions
at a rate of 11.0%. Superannuation contributions are paid up to the concessional contributions cap
($27,500 for the current financial year), with any excess over this cap paid out as base salary. Where
KMP are only appointed for part of the financial year, their FAR will be pro-rated.
Market positioning
FAR levels are reviewed regularly to ensure that they remain at a competitive level. In assessing
the appropriateness of FAR levels provided to Executive KMP, MONEYME will consider its
positioning relative to the following comparator groups:
• peer financial services and technology companies; and/or
• companies with a comparable market capitalisation to MONEYME.
Contractual FAR
MD & CEO: $650,000
CFO: $387,500
STI
Description
Executive KMP are eligible to participate in the annual STI plan which comprises a portion of their
variable remuneration in FY24 and is subject to performance conditions.
Performance period
1 year (1 July 2023 to 30 June 2024).
Maximum opportunity if all
performance measures met
MD & CEO: $650,000
CFO7: $150,000 (pro-rated: $45,082)
Delivery
The STI award is wholly delivered as cash following the end of the performance period.
Performance conditions
For each financial year, the STI outcome is subject to achieving a set of Corporate and Individual
KPIs, which align to the achievement of the Group’s growth strategy. The performance measures
reflect operational, business development and financial outcomes. The FY24 Corporate KPIs are
detailed in section 4.2.2.
Malus / clawback
The Group has malus (downwards adjustment of unvested or unpaid remuneration) and clawback
(repayment of vested or paid remuneration) provisions in place for its KMP.
Typically, in circumstances of any serious misconduct by the individual, and/or any material
misstatement in the Financial Statements of the Group or any of its Related Bodies Corporate
during any of the preceding 3 financial years, the Board may:
• reduce current year STI outcomes yet to be paid (malus); or
• require the repayment of some or all of their previous STI payments or adjust current year
remuneration arrangements (FAR and incentive arrangements) to match the amount due to be
repaid (clawback).
Board discretion
The Board retains absolute discretion regarding the operation of the STI plan subject to compliance
with the ASX Listing Rules.
LTI
Description
Executive KMP are eligible to participate in the annual LTI plan, which comprises a portion of their
variable remuneration in FY24 and is subject to performance conditions. The LTI is delivered via the
granting of Employee Performance Rights (EPRs).
Performance period and
exercise restriction period
There are two performance periods: the first from 1 July 2023 to 30 June 2024 (Performance Period
1) and the second from 1 July 2024 to 30 June 2025 (Performance Period 2). In respect of each
performance period, up to 50% of the total number of performance rights granted will be available
to vest, depending on the extent to which the performance conditions detailed below are satisfied in
respect of that performance period.
There is an additional 2-year and 1-year exercise restriction following Performance Period 1 and
Performance Period 2 respectively, such that 100% of vested EPRs cannot be exercised until the
day following the release of the Group’s annual financial results for the financial year ending 30 June
2026.
Exercise period
Executive KMP have 2 years to exercise their EPRs before they lapse following the end of any
applicable exercise restriction on any vested EPRs.
Maximum opportunity if all
performance measures met
MD & CEO: $950,000
CFO8: $150,000 (pro-rated: $40,000)
2024 Annual Report
33
Delivery
The LTI Grant is wholly delivered via performance rights, granted to the individual for $nil
consideration.
Allocation methodology
The number of performance rights granted was calculated by dividing the maximum dollar value of the
award by $0.08, being the offer price of shares issued under the institutional placement and the Share
Purchase Plan undertaken by the Company in May and June 2023.
Performance vesting conditions
The FY24 LTI grant is subject to an assessment against the performance conditions set out below.
Cash NPAT (40%):
Cash NPAT has been selected as a measure to focus management on delivering a level of profitability
aligned to the Group’s long-term plan.
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100% or more of planned Cash NPAT in Board-approved
Financial Plan
100%
Between 80% and 100% of planned Cash NPAT in
Board-approved Financial Plan
Pro-rata vesting between 80%
to 100%
80% of Planned Cash NPAT in Board-approved Financial Plan
80%
Less than 80% of Planned Cash NPAT in Board-approved
Financial Plan
Nil
Relative TSR (30%):
Relative TSR has been selected as a measure as it assesses MONEYME’s ability to deliver TSR above
the S&P ASX Small Ordinaries Index.
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TSR is 10% or more above the Index
100%
TSR is between the Index or up to 10% above the Index
Pro-rata vesting between 80%
to 100%
TSR is equal to the Index
80%
TSR is below the Index
Nil
Strategic initiatives (30%):
A strategic component has been selected as a measure to focus management on executing the Board-
approved strategic initiatives crucial to the Group’s long-term success. These KPIs concern funding,
corporate debt, innovation, delivery against corporate strategy and leadership and people. Specific
details have been withheld due to market sensitivities.
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Delivery of all Board-approved strategic initiatives
100%
Partial delivery of Board-approved strategic initiatives
50%
No delivery of Board-approved strategic initiatives
0%
Detail on the outcomes achieved will be provided once the FY24 LTI is assessed at the end of the
performance period.
Employment vesting
conditions
Typically:
• where an individual ceases employment as a ‘bad leaver’ (i.e., due to resignation, dismissal for
cause or poor performance, or any other circumstances determined by the Board to constitute ‘bad
leaver’), any unvested performance rights will lapse; and
• where an individual ceases employment as a ‘good leaver’ (i.e., due to disablement, mental illness,
redundancy, death, terminal illness or for reasons other than those of a ‘bad leaver’), any unvested
performance rights will lapse, and any vested performance rights will remain exercisable until the
end of the exercise period.
Malus / clawback
The Group has malus (downward adjustment of unvested or unpaid remuneration) and clawback
(repayment of vested or paid remuneration) provisions in place for its KMP.
In circumstances of any serious misconduct by the individual, and/or any material misstatement in the
Financial Statements of the Group or any of its Related Bodies Corporate during any of the preceding
3 financial years, the Board may:
• lapse all/a portion of unexercised performance rights (commonly known as ‘malus’); and/or
• require the repayment of the after-tax value of exercised performance rights or adjust current year
remuneration arrangements (FAR and incentive arrangements) to match the after-tax value of the
amount due to be repaid (commonly known as ‘clawback’).
2024 Annual Report
34
MONEYME
remuneration for the
current & prior financial
years
Financial
year
FAR
STI
LTI
Total
Salary9
Additional
benefits10
Superannuation11
Cash
payment
Performance
rights12
$
$
$
$
$
$
Clayton Howes
2024
622,500
109,235
27,500
631,379
249,484
1,640,098
2023
497,625
133,663
27,500
337,500
280,099
1,276,388
Neal Hawkins
2024
265,080
25,002
27,500
25,000
13,636
356,218
2023
302,500
20,039
27,500
150,000
151,823
651,861
David Wright13
2024
103,848
6,911
11,423
43,790
2,764
168,736
2023
-
-
-
-
-
-
Total
2024
991,428
141,148
66,423
700,169
265,884
2,165,052
2023
800,125
153,702
55,000
487,500
431,922
1,928,249
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The terms of employment (including remuneration) for Executive KMP are outlined as per their executive service agreements
with the Group. A summary of key terms is provided below.
Name
Duration of service
agreement
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Severance payment
entitlement
Restraint
period
By executive
By Group
Clayton Howes
(MD & CEO)
Ongoing
6 months
6 months
No entitlement
6 months
David Wright (CFO)
Part year
From 13 March 2024
3 months
3 months
No entitlement
6 months
On 28 February 2024, Neal Hawkins ceased to be employed in his role as CFO. He received his statutory entitlements and a pro-rated
FY24 STI award to recognise his contribution to the Company for the year, however, he was not eligible to participate in the FY24 LTI
plan. All unvested LTI performance rights lapsed.
4.2 FY24 outcomes
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The table below summarises current and prior financial year executive KMP remuneration.
Board discretion
The Board retains absolute discretion regarding the operation of the LTI Grant subject to compliance
with the ASX Listing Rules.
9 Salary and cash payments comprise the short-term benefits.
10 In FY24, additional benefits only include accrued leave entitlements. For FY23, additional benefits included a car allowance, rental payments and accrued
leave entitlements. Leave is included on a net movement basis.
11 Superannuation is a post-employment benefit.
12 Performance rights are subject to meeting the vesting criteria. The amount disclosed is representative of the accounting remuneration.
13 David Wright was appointed as CFO of the Group on 13 March 2024.
7 David Wright’s STI maximum opportunity for the full financial year is $150,000. However, the FY24 figure was pro-rated to reflect his starting date of 13
March 2024 to a maximum opportunity of $45,082 for FY24.
8 David Wright’s LTI maximum opportunity for the full financial year is $150,000, which would equate to 1,875,000 rights at $0.08. However, this was pro-
rated to reflect his starting date of 13 March 2024 to a maximum opportunity of $40,000 (500,000 rights) for FY24.
2024 Annual Report
35
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The below table outlines the Board’s assessment of the CEO and CFO FY24 STI performance outcomes. The Board has assessed
a total outcome of 97%, based on the measures set out below.
bm-m1b-Ѵ;-vu;v
Measure
Maximum weighting
FY24 Actual
Description
Assessed weighting
Statutory NPAT
30%
$22.7 million
Target exceeded over performance period
30%
Gross Revenue
20%
$214.1 million
Target partially achieved over performance
period
18%
omŊ
bm-m1b-Ѵ;-vu;v
Measure
Maximum weighting
FY24 Actual
Description
Assessed weighting
Customer NPS
10%
69
Target exceeded over performance period
10%
Environmental,
Social & Governance
(ESG) - B Impact
Assessment Score
10%
91.2
Target exceeded over performance period
10%
Staff Engagement
10%
81%
Target exceeded over performance period
10%
Risk Management
20%
96%
Target partially achieved over performance
period14
19%
100%
97%
Executive KMP
Maximum STI
STI realised
STI cancelled
STI payment
$
%
%
$
Clayton Howes
650,000
97%
3%
631,379
Neal Hawkins15
25,000
100%
0%
25,000
David Wright16
45,082
97%
3%
43,790
Executive KMP
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2024
2023
2024
2023
Clayton Howes
46%
51%
54%
49%
Neal Hawkins
89%
54%
11%
46%
David Wright
72%
N/A
28%
N/A
14 The Board measured the Group’s risk management across five key business areas: (1) funding & liquidity; (2) regulatory; (3) technology & cyber security;
(4) credit risk; and (5) brand & people.
15 Neal Hawkins ceased his role as CFO of the Group on 28 February 2024. His $25,000 STI was paid in full.
16 David Wright was appointed as CFO of the Group on 13 March 2024. His maximum STI was therefore pro-rated from his start date to 30 June 2024.
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It is noted that Clayton Howes will receive the remaining 35% of LTI left to vest from the 2022 Series 1 EPR Award, which was
assessed as part of the FY23 performance outcomes. For further information, refer to the 2023 Remuneration Report.
Only Clayton Howes held any LTI awards eligible for assessment in FY24. Since David Wright began in his role as CFO of the
Group in March 2024, it was determined that he would not be assessed as part of 2024 Series 1, but rather his full LTI allocation
(500,000 rights) would be assessed as part of the FY25 performance review. The assessments below relate to the 2023 Series 1
EPR Award and Performance Period 1 (PP 1) of the 2024 Series 1 EPR Award.
The relative proportions of those elements of remuneration of executive KMP that are linked to performance are detailed in the
table below.
2024 Annual Report
36
4.2.3.1 2023 Series 1 EPR
The maximum LTI available for the 2023 Series 1 EPR Award for Clayton Howes is 338,710 performance rights. The performance
period commenced on 1 July 2022 and concluded on 30 June 2024. Refer to the 2023 Remuneration Report in the 2023 Annual
Report for further information.
The tables below outline the Board’s assessment of Clayton Howes’ 2023 Series 1 EPR LTI grant performance outcomes. The
Board has assessed a vesting outcome of 30%, based on the measures set out below for the performance period from 1 July
2022 to 30 June 2024. 15% of the assessed outcome vested this financial year, with the remaining 15% to vest in the next
financial year.
bm-m1b-Ѵ;-vu;v
Measure
Maximum weighting
FY23-24 Actual
Description
Assessed weighting
Revenue Growth
40%
-5%
Target not achieved over performance period
0%
TSR
30%
-89%
Target not achieved over performance period17
0%
omŊ
bm-m1b-Ѵ;-vu;v
Measure
Maximum weighting
FY23-24 Actual
Description
Assessed weighting
ESG – B Impact
Assessment Score
30%
91.2
Target exceeded over performance period
30%
100%
30%
bm-m1b-Ѵ;-vu;v
Measure
Maximum weighting
FY24 Actual
Description
Assessed weighting
Cash NPAT
40%
$22.4 million
Target partially achieved over performance
period
37%
TSR
30%
36%
Target achieved over performance period18
30%
omŊ
bm-m1b-Ѵ;-vu;v
Measure
Maximum weighting
FY24 Actual
Description
Assessed weighting
Strategic
Initiatives
30%
100%
Target achieved over performance period19
30%
100%
97%
Executive KMP
Maximum LTI
LTI vested
LTI to vest
LTI cancelled
LTI realised
No.
%
%
%
No.
Clayton Howes
338,710
15%
15%
70%
101,613
Executive KMP
Maximum LTI
LTI vested
LTI to vest
LTI cancelled
LTI realised
No.
%
%
%
No.
Clayton Howes
5,937,500
49%
48%
3%
5,759,375
17 This has been calculated in reference to the S&P ASX Small Ordinaries Index.
18 This has been calculated in reference to the S&P ASX Small Ordinaries Index. Measurement of TSR over the performance period takes the 5 day VWAP
share price post the 4Q Trading Updates for each year (i.e., 1 August 2023 and 1 August 2024).
19 The Board determined that management delivered all Board-approved strategic initiatives. The strategic initiatives were across five key business areas
of focus: (1) extending our technology advantage; (2) increasing secured asset lending; (3) growing our operating leverage; (4) optimising the business for
growth; and (5) further strengthening data protection.
4.2.3.2 2024 Series 1 EPR
The maximum LTI available for Performance Period 1 (PP 1) of the 2024 Series 1 EPR Award for Clayton Howes is 5,937,500
performance rights (being 50% of the total number of performance rights granted). See section 4.1.2 for further information.
The table below outlines the Board’s assessment of Clayton Howes’ 2024 Series 1 EPR LTI PP 1 grant performance outcomes.
The Board has assessed a vesting outcome of 97%, based on the measures set out below for the performance period from 1
July 2023 to 30 June 2024. 49% of the assessed outcome vested this financial year, with the remaining 48% to vest in the next
financial year.
2024 Annual Report
37
Position
FY24 fees
Board Chair
$137,500
Board Members
$77,000
Committee Chair
$11,000
Directors who sit as Committee members receive no additional fees. The fees outlined above are exclusive of statutory
superannuation contributions and are pro-rated for part-year Directors.
No equity plan-based incentives were granted to NEDs in the 2024 financial year. As part of the Group’s Initial Public Offering
(IPO) in December 2019, some of the NEDs received arrangements where they received rights subject to service. These
are referred to as ‘service rights’ and are distinguishable from EPRs due to their nature of being linked to service rather than
performance.
ƒĸƎĸƏom|u-1|-Ѳ-uu-m];l;m|v
NEDs are appointed on a 3-year term and must not hold office without re-election for 3 or more years or for 3 or more Annual
General Meetings since they were last elected to office.
5.2 2024 outcomes
ƒĸƏĸƎ!;lm;u-ࢼomvll-u
The table below summarises current and prior financial year NED remuneration. All NED remuneration in FY23 and FY24 was
fixed-rate remuneration. As part of their directorship, NEDs do not receive any performance-based remuneration.
5. NED remuneration
5.1 Remuneration framework
5.1.1 Fees
NEDs are provided with fees to compensate them for the time commitment required in their role. These fees are set at a level
which allows the Group to attract and retain experienced and skilled Directors who are collectively responsible for the success
of the Group by directing its strategy and supervising its business operations. The total remuneration paid to Directors is not to
exceed the fee pool, which is currently set at $650,000.
The FY24 fee levels are set out below, which are consistent with the fee levels in FY23.
MONEYME remuneration for
the current & prior financial
years
Financial
year
FAR
LTI
Total
Fees20
Superannuation21
Service rights22
$
$
$
$
Jamie McPhee23
2024
27,379
3,012
–
30,391
2023
–
–
–
–
Scott Emery24
2024
57,970
27,500
–
85,470
2023
74,985
13,619
–
88,604
Rachel Gatehouse
2024
88,000
9,680
–
97,680
2023
38,449
4,037
–
42,486
Susan Hansen25
2024
44,917
4,941
–
49,858
2023
–
–
–
–
David Taylor26
2024
83,417
9,176
–
92,593
2023
77,000
8,085
–
85,085
Peter Coad27
2024
126,042
13,865
4,545
144,452
2023
137,500
14,437
34,416
186,353
Susan Wynne28
2024
58,667
6,453
–
65,120
2023
88,000
9,240
2,273
99,513
Jonathan Lechte29
2024
–
–
–
–
2023
36,667
3,850
–
40,517
Total
2024
486,392
74,627
4,545
565,564
2023
452,601
53,269
36,688
542,558
2024 Annual Report
38
20 Fees and cash payments comprise the short-term benefits.
21 Superannuation is a post-employment benefit.
22 Service rights are subject to meeting the vesting criteria. The amount disclosed is representative of the accounting remuneration.
23 Jamie McPhee was appointed as a Director of the Group on 14 March 2024. He was further appointed as the Chair of the Board on 1 June 2024,
following Peter Coad’s resignation from the Board.
24 Scott Emery sacrificed a portion of his NED fees in FY23 and FY24 to his superannuation.
25 Susan Hansen was appointed as a Director of the Group on 1 December 2023.
26 David Taylor was appointed Chair of the RNC on 30 November 2023, hence the partial uplift in his 2024 fee.
27 Peter Coad ceased being a Director of the Group and the Chair of the Board on 1 June 2024.
28 Susan Wynne ceased being a Director of the Group on 29 November 2023. As part of her outgoing agreement, Susan received a payout of her 12 week
notice period equating to $22,000.
29 Jonathan Lechte ceased being a Director of the Group on 30 November 2022. He is shown in the above table due to his tenure as a MONEYME Group
Director in FY23.
6. KMP performance rights and share ownership
6.1 Performance rights
The table below outlines the movements in performance rights for KMP, including those granted, vested/exercised, and lapsed
during the financial year. The NEDs’ performance rights shown are subject to service, rather than LTI targets as is the case with
Executive KMP. As part of their directorship, NEDs do not receive any performance-based incentives.
30 Peter Coad ceased being a Director of the Group on 1 June 2024.
31 Susan Wynne ceased being a Director of the Group on 29 November 2023.
32 Jonathan Lechte ceased being a Director of the Group on 30 November 2022.
33 Neal Hawkins ceased being CFO of the Group on 28 February 2024. The closing balance amount shows his rights holding at the date of termination.
KMP
Financial
year
Opening balance
Rights granted
Rights exercised
Rights lapsed
Closing
balance
No.
No.
No.
No.
No.
Jamie McPhee
2024
-
-
-
-
-
2023
-
-
-
-
-
Clayton Howes
2024
969,159
11,875,000
(530,475)
(15,750)
12,297,934
2023
630,449
338,710
-
-
969,159
Scott Emery
2024
-
-
-
-
-
2023
-
-
-
-
-
Rachel Gatehouse
2024
-
-
-
-
-
2023
-
-
-
-
-
Susan Hanse
2024
-
-
-
-
-
2023
-
-
-
-
-
David Taylor
2024
-
-
-
-
-
2023
-
-
-
-
-
Peter Coad30
2024
100,000
(100,000)
-
-
2023
100,000
-
-
-
100,000
Susan Wynne31
2024
60,000
-
(60,000)
-
-
2023
60,000
-
-
-
60,000
Jonathan Lechte32
2024
-
-
-
-
-
2023
100,000
-
-
(100,000)
-
Neal Hawkins33
2024
331,755
-
(42,500)
(242,463)
46,792
2023
233,583
188,172
(90,000)
-
331,755
David Wright
2024
-
500,000
-
-
500,000
2023
-
-
-
-
-
Total
2024
1,460,914
12,375,000
(732,975)
(258,213)
12,844,726
2023
1,124,032
526,882
(90,000)
(100,000)
1,460,914
2024 Annual Report
39
KMP
Award
Grant
date
Performance
period start
date
Performance
period end
date
No. of rights
at 30 June
2024
Vesting date
Exercising date
Clayton
Howes
2020 Series
2 EPR
November
2019
1 July 2019
30 June
2021
-
Day after result release
of annual reports for
2021 (50%) and 2022
(50%)
Day after result release
of annual reports for
2022 (50%) and 2023
(50%)
2021 Series
1 EPR
December
2020
1 July 2020
30 June
2022
-
Day after result release
of annual reports for
2022 (50%) and 2023
(50%)
Day after result release
of annual reports for
2023 (50%) and 2024
(50%)
2022 Series
1 EPR
December
2021
1 July 2021
30 June
2023
84,224
Day after result release
of annual reports for
2023 (50%) and 2024
(50%)
Day after result release
of annual reports for
2024 (50%) and 2025
(50%)
2023 Series
1 EPR
January
2023
1 July 2022
30 June
2024
338,710
Day after result release
of annual reports for
2024 (50%) and 2025
(50%)
Day after result release
of annual reports for
2025 (50%) and 2026
(50%)
2024 Series
1 EPR
April
2024
1 July 2023
PP 1: 30
June 2024
PP 2: 30
June 2025
11,875,000
Day after result release
of annual reports for
2024 (50%) and 2025
(50%)
Day after result release
of annual reports for
2026 (100%)
David
Wright
2024 Series
1 EPR
April
2024
1 July 202434
30 June
2025
500,000
Day after result release
of annual reports for
2025 (100%)
Day after result release
of annual reports for
2026 (100%)
6.2 Shares
The table below outlines the shareholdings of KMP and their related parties. This includes MONEYME shares received from the
Group’s variable remuneration arrangements and shares acquired outside of these arrangements.
KMP
Opening
balance35
Received on exercise
of rights
Purchased /
acquired
Disposed
Closing
balance36
No.
No.
No.
No.
No.
Jamie McPhee
-
-
-
-
-
Clayton Howes
51,294,717
530,475
-
-
51,825,192
Scott Emery
97,308,802
-
1,682,448
-
98,991,250
Rachel Gatehouse
-
-
-
-
-
Susan Hansen
-
-
-
-
-
David Taylor
34,015
-
-
-
34,015
Peter Coad
931,326
100,000
-
-
1,031,326
Susan Wynne
-
60,000
-
-
60,000
Neal Hawkins
485,000
42,500
-
-
527,500
David Wright
-
-
72,000
-
72,000
Total
150,053,860
732,975
1,754,448
-
152,541,283
35 Jonathan Lechte has been removed from the table as he ceased being a Director of the Group in FY23. The opening balance has been adjusted to
remove his shareholdings.
36 If an individual resigned or ceased in their role as a KMP in FY24, the closing balance represents their shareholding on their final date as a MONEYME
KMP.
The table below outlines the rights held by KMP as at 30 June 2024. The only service-related rights provided to NEDs were
as part of the December 2019 IPO. No current NEDs have received any performance- or service-based remuneration and are
therefore not included in the table below.
34 David Wright was appointed as CFO of the Group on 13 March 2024. It was therefore agreed that his 2024 Series 1 EPR allocation will be fully assessed in FY25.
2024 Annual Report
40
Financial Report
2024 Annual Report
41
41
Directors’ Declaration ............................................................................................................................ 42
Auditor’s Independence Declaration .................................................................................................43
Independent Auditor’s Report .............................................................................................................44
Consolidated Statement of Profit / (Loss) and Other Comprehensive Income ......................48
Consolidated Statement of Financial Position ................................................................................49
Consolidated Statement of Changes in Equity ................................................................................50
Consolidated Statement of Cash Flows .............................................................................................51
Notes to the Financial Statements ..................................................................................................... 52
1. Group information ............................................................................................................................... 52
2. New and amended accounting standards ...................................................................................... 53
3. Material accounting policies .............................................................................................................. 53
4. Critical accounting estimates and judgements.............................................................................. 59
5. Other income........................................................................................................................................ 62
6. Expenses ................................................................................................................................................ 62
7. Taxation .................................................................................................................................................. 63
8. Earnings per share ............................................................................................................................... 64
9. Operating cash flow reconciliation .................................................................................................. 65
10. Net loan receivables ......................................................................................................................... 65
11. Intangible assets including goodwill .............................................................................................. 69
12. Leases .................................................................................................................................................. 71
13. Property, plant and equipment....................................................................................................... 71
14. Other receivables and payables ..................................................................................................... 72
15. Borrowings ......................................................................................................................................... 73
16. Employee related provisions and Key Management Personnel (KMP) remuneration ........ 74
17. Share capital ....................................................................................................................................... 74
18. Reserves .............................................................................................................................................. 75
19. Financial risk management .............................................................................................................. 77
20. Related party transactions ............................................................................................................... 81
21. Parent entity information ................................................................................................................ 82
22. Deed of Cross Guarantee................................................................................................................ 82
23. Remuneration of auditors ................................................................................................................ 83
24. Subsequent events ........................................................................................................................... 83
Contents
2024 Annual Report
42
(3). there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and
payable;
(4). as at the date of this declaration, there are reasonable grounds to believe that the members of the closed group identified in
Note 22 will be able to meet any liabilities to which they are, or may become, subject to given the deed of cross guarantee
described in Note 22; and
(5). the information disclosed in the consolidated entity disclosure statement is true and correct.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001 (Cth).
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001 (Cth).
On behalf of the Directors.
Jamie McPhee
Clayton Howes
Chair
Managing Director and Chief Executive Officer
28 August 2024
28 August 2024
In the opinion of the Directors of MoneyMe Limited:
(1). the 2024 Financial Statements and Notes are in accordance with the
Corporations Act 2001 (Cth), including compliance with the accounting
standards and give a true and fair view of the financial position of the
Group as at 30 June 2024, and of its performance for the financial
year ended at that date;
(2). the Financial Statements are in compliance with International
Financial Reporting Standards as stated in Note 3.1.1 to the Financial
Statements;
Directors’ Declaration
Financial Report
2024 Annual Report
43
Auditor’s Independence
Declaration
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney NSW 2000
Locked Bag Q800
Queen Victoria Building NSW
1230
T +61 2 8297 2400
w
#12165301v3
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Auditor’s Independence Declaration
To the Directors of MoneyMe Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of MoneyMe Limited for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief,
there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
C L Scott
Partner – Audit & Assurance
Sydney, 28 August 2024
2024 Annual Report
44
Independent Auditor’s
Report
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney NSW 2000
Locked Bag Q800
Queen Victoria Building NSW
1230
T +61 2 8297 2400
w
#12165304v4
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Independent Auditor’s Report
To the Members of MoneyMe Limited
Report on the audit of the financial report
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Opinion
We have audited the financial report of MoneyMe Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2024, 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, the consolidated entity disclosure statement
and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance
for the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
2024 Annual Report
45
Grant Thornton Audit Pty Ltd
Key audit matter
How our audit addressed the key audit matter
Customer Loans Recoverability – Note 10.1.3
As at 30 June 2024, the Group recognised $56.8
million in expected credit loss (ECL) provisions in
accordance with AASB 9 Financial Instruments
(AASB 9) as disclosed in Note 10.1.3.
The recoverability of the loan carrying values is
impacted by the quality of the loan assessment and
origination process, the value of security held, the
performance of the loan book and factors external to
the Group such as economic conditions.
Under AASB 9, entities need to perform forward
looking analysis in order to identify internal and
external factors that may impact expected credit
losses which requires significant management
judgement.
The accounting standard also requires more
detailed analysis on assets that have experienced a
significant deterioration in credit quality based on a
3-stage model.
This process is inherently complex and requires
significant judgement and assumptions. Accordingly,
we have determined that this is a key audit matter.
Our procedures included, amongst others:
x
Understanding the controls relating to loan approvals
and identifying loans in arrears;
x
Testing a sample of exposures to assess if they were
appropriately classified in the correct default stage;
x
Engaging our internal credit risk modelling experts to
test the application of management’s assumptions and
the mathematical accuracy of the models;
x
Proving mathematical accuracy of the ECL model and
testing data inputs to support;
x
Assessing the appropriateness of assumptions used in
the model in relation to external and internal factors.
This included an analysis of the reasonableness of
assumptions in the ECL model when compared to
historical loan book performance, other financial
institutions and market commentary;
x
Performing a sensitivity analysis of the ECL model to
support the reasonableness of management’s key
assumptions, including macroeconomic factors and
forward-looking overlay;
x
Comparing classification and measurement
assessment for all financial assets and liabilities; and
x
Comparing the disclosures relating to accounting
estimates for compliance with AASB 7 Financial
Instruments: Disclosures (AASB 7) and AASB 9.
Revenue Recognition – Note 3.1.8.1
The Group reported interest income of $207.1
million for the year ended 30 June 2024 and
reported net loans receivable of $1.2 billion at year
end. Interest revenue on customer loans is
determined using the effective interest rate (EIR)
method in accordance with AASB 9 Financial
Instruments (AASB 9).
The EIR is applied for revenue recognition and will
encompass any fees or other charges that are
incurred by a customer at the time of acquiring a
loan asset by the Group. Consequently, these fees
(or expenses) are not recognised at the time the
cash is collected but over the life of the loan asset
contract. Therefore, management employs
significant judgement to determine which fees and
charges qualify for the EIR method and over which
period of time the fees are recognised. As a result,
the EIR model has elements of significant
complexity.
Our procedures included;
x
Assessing the policy of revenue recognition for all
revenue streams and comparing to requirements of
the accounting standards;
x
Obtaining management's EIR model and assessing
the appropriateness of management’s controls over
this along with proving mathematical accuracy of the
model and performing a recalculation of interest
income recognised;
x
Inspecting a sample of loan contracts and verifying all
relevant details to management’s EIR model along
with verifying the fees and charges as part of the loan
contract;
x
Recalculating expected interest for the financial year
based on monthly loan balances and average contract
interest rates. Comparing the expectation to actual
interest recognised; and
2024 Annual Report
46
Grant Thornton Audit Pty Ltd
This process is inherently complex and requires
significant judgement and assumptions. Given the
inherent complexity and significant management
judgement, we have determined that this is a key
audit matter.
x
Comparing financial report disclosures to requirements
of the Australian Accounting Standards.
Goodwill impairment assessment – Note 11.2
As at 30 June 2024, the Group’s non-current assets
include goodwill amounting to $63.5 million.
AASB 136 Impairment of Assets prescribes for
Goodwill to be assessed for impairment annually by
Management.
The Group determined the recoverable amount
using a discounted cash flow model (value-in-use).
This method involves making significant estimates
and judgements, including forecasting future cash
flows, loan growth, ECL provision rate, terminal
growth rate and discount rates.
There were identifiable indicators of impairment in
the year to 30 June 2024, with the primary indicator
being market capitalisation of the Group being lower
than net assets.
This area is a key audit matter due to the
complexity, subjectivity, and estimation uncertainty
involved in estimating the recoverable amount.
Our procedures included, amongst others:
x
Reviewing the model for compliance with AASB 136;
x
Assessing management’s determination of the Cash
Generating Unit (“CGU”) as required by AASB 136;
x
Reviewing management’s assessments of impairment
indicators including market capitalisation compared to
net assets;
x
Performing a retrospective review of management’s
historic budgets and determining their accuracy of
cashflow forecasting;
x
Verifying the mathematical accuracy of the underlying
model calculations and assessing the appropriateness
of the methodologies;
x
Evaluating the cash flow projections and the process
by which they were developed;
x
Engaging an auditor’s expert and performing
sensitivity analysis in relation to the cash flow
projections, discount and growth rate assumptions;
and
x
Assessing the adequacy of the financial statement
disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report 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.
Responsibilities of the Directors for the financial report
The directors of the Company are responsible for the preparation of:
a)
the financial report that gives a true and fair view in accordance with Australian Accounting Standards
and the Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
2024 Annual Report
47
Grant Thornton Audit Pty Ltd
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report that gives a true and fair view and is free from material misstatement, whether due
to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the Directors are responsible 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 financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is 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 the Australian Auditing Standards 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 economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
C L Scott
Partner – Audit & Assurance
Sydney, 28 August 2024
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 27 to 39 of the Directors’ report for the year
ended 30 June 2024.
In our opinion, the Remuneration Report of MoneyMe Limited for the year ended 30 June 2024 complies
with section 300A of the Corporations Act 2001.
2024 Annual Report
48
Consolidated Statement of Profit / (Loss) and
Other Comprehensive Income
For the year ended 30 June 2024
2024
2023
Note
$’000
$’000
Interest income
207,128
229,659
Other income
5
7,018
9,218
Gross revenue
214,146
238,877
Commission expense
(9,798)
(5,939)
Net revenue
204,348
232,938
Interest expense
6.1
(98,472)
(89,805)
Sales and marketing expense
(7,005)
(7,906)
Product design and development expense
(4,729)
(8,570)
General and administrative expense
(36,424)
(35,488)
Loan receivable impairment expense
10
(34,385)
(67,543)
Depreciation and amortisation expense
11, 12, 13
(10,946)
(11,340)
Total expenses
(191,961)
(220,652)
Profit before tax
12,387
12,286
Income tax benefit
7
10,338
–
Net profit after tax
22,725
12,286
Other comprehensive income
–
–
Total comprehensive income
22,725
12,286
cents
cents
Basic profit per share
8
2.9
3.8
Diluted profit per share
8
2.9
3.8
The Financial Statements are to be read in conjunction with the Notes to the Financial Statements.
2024 Annual Report
49
Consolidated Statement of Financial Position
As at 30 June 2024
2024
2023
Note
$’000
$’000
Cash and cash equivalents
73,630
91,714
Net loan receivables
10.2
1,161,799
1,073,653
Derivative financial instruments
19.5
2,596
7,934
Other receivables
14.1
19,481
14,422
Deferred tax asset
7.2
13,530
3,192
Intangible assets
11
28,830
32,757
Right-of-use assets
12.1
1,947
2,961
Property, plant and equipment
13
2,180
3,082
Goodwill
11.2
63,510
63,510
Total assets
1,367,503
1,293,225
Borrowings
15
1,166,711
1,115,421
Other payables
14.2
5,953
6,199
Lease liabilities
12.2
2,176
3,117
Employee-related provisions
16.1
2,775
2,425
Total liabilities
1,177,615
1,127,162
Net assets
189,888
166,063
Share capital
17
203,428
203,428
Reserves
18
7,757
6,657
Retained losses
(21,297)
(44,022)
Total equity
189,888
166,063
The Financial Statements are to be read in conjunction with the Notes to the Financial Statements.
2024 Annual Report
50
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024
Share capital
Reserves
Retained losses
Total
Note
$’000
$’000
$’000
$’000
Balance as at 30 June 2022
143,055
4,529
(56,308)
91,276
Profit for the period
–
–
12,286
12,286
Issuance of shares
62,547
–
–
62,547
Share issuance transaction costs
(2,174)
–
–
(2,174)
Share-based payment expense
18
–
2,128
–
2,128
Balance as at 30 June 2023
203,428
6,657
(44,022)
166,063
Profit for the period
–
–
22,725
22,725
Share-based payment expense
18
–
1,100
–
1,100
Balance as at 30 June 2024
203,428
7,757
(21,297)
189,888
The Financial Statements are to be read in conjunction with the Notes to the Financial Statements.
2024 Annual Report
51
2024
2023
Note
$’000
$’000
Net loan receivable (outflows) / inflows
(104,650)
118,116
Income from customers
182,694
203,945
Borrowings interest and fees paid
i
(82,574)
(83,229)
Income from delinquent asset sales and recoveries
19,658
30,798
Payments to suppliers and employees
(67,018)
(62,168)
Income tax refund received
–
13
Proceeds from disposal of interest rate swaps
1,110
911
Net cash (outflows) / inflows from operating activities
9
(50,780)
208,386
Payments for intangible asset development
(4,838)
(5,977)
Payments for property, plant and equipment
(72)
(2,587)
Net cash (outflows) from investing activities
(4,910)
(8,564)
Net receipt / (repayment of) borrowings
42,655
(244,642)
Transaction costs related to borrowings
(3,792)
(3,484)
Principal repayment of leases
ii
(1,257)
(1,116)
Proceeds from issued share capital
–
62,546
Transaction costs related to issue of share capital
–
(2,087)
Net cash inflows / (outflows) from financing activities
37,606
(188,783)
Net (decrease) / increase in cash and cash equivalents
(18,084)
11,039
Opening cash and cash equivalents
91,714
80,675
Closing cash and cash equivalents
73,630
91,714
Unrestricted cash
19,818
16,117
Restricted cash
iii
53,812
75,597
Closing cash and cash equivalents
73,630
91,714
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
i: Includes interest related to borrowings (see Note 15).
ii: Includes $0.2 million of implied interest as calculated in accordance with AASB 16 Leases.
iii: Refers to cash that is held by the Group that is not available for immediate ordinary business use. This predominately relates to cash held in
securitisation structures.
The Financial Statements are to be read in conjunction with the Notes to the Financial Statements.
2024 Annual Report
52
Notes to the Financial Statements
For the year ended 30 June 2024
1. Group information
1.1 Company information
MoneyMe Limited (the Company or MONEYME) is a listed public company limited by shares, incorporated and domiciled in
Australia. The Company is the ultimate controlling entity of the controlled entities listed in Note 1.2 below and is otherwise
described as the parent company. The Company was incorporated on 17 October 2019. The address of its registered office and
principal place of business is:
Level 3
131 Macquarie Street
Sydney NSW 2000
The principal activity of the Company and its controlled entities (the Group) is to provide consumer finance.
1.2 Controlled entities information
Name1
Date of control /
acquisition
Proportion of
ownership held by
the Group
Entity type and place
of incorporation
Location and
tax residency
status
2024
2023
MoneyMe Limited2
11 November 2019
100%
100%
Body corporate (Australia)
Australia
MoneyMe Financial Group Pty Ltd
9 May 2013
100%
100%
Body corporate (Australia)
Australia
MoneyMe Finance Pty Limited3
7 November 2019
100%
100%
Body corporate (Australia)
Australia
MoneyMe Technology Pty Limited
7 November 2019
100%
100%
Body corporate (Australia)
Australia
MoneyMe Partnerships Pty Limited4
7 November 2019
100%
100%
Body corporate (Australia)
Australia
MoneyMe International Pty Ltd5
13 October 2020
100%
100%
Body corporate (Australia)
Australia
ListReady Pty Limited
29 May 2019
100%
100%
Body corporate (Australia)
Australia
RentReady Pty Limited
7 May 2020
100%
100%
Body corporate (Australia)
Australia
Price Enquiry Pty Limited
3 February 2021
100%
100%
Body corporate (Australia)
Australia
MoneyMe TM Pty Ltd
6 December 2021
100%
100%
Body corporate (Australia)
Australia
S.One SPV Pty Limited6
15 March 2022
–
100%
Body corporate (Australia)
Australia
MoneyMe Employment Services Pty Ltd
(formerly SocietyOne Holdings Pty Ltd)
15 March 2022
100%
100%
Body corporate (Australia)
Australia
SocietyOne Australia Pty Ltd7
15 March 2022
100%
100%
Body corporate (Australia)
Australia
SocietyOne Investments Pty Ltd
15 March 2022
100%
100%
Body corporate (Australia)
Australia
SocietyOne Investment Management
Pty Ltd
15 March 2022
100%
100%
Body corporate (Australia)
Australia
Broker Services Pty Ltd (formerly
SocietyOne Services Pty Ltd)
15 March 2022
100%
100%
Body corporate (Australia)
Australia
SocietyOne Livestock Lending Pty Ltd
15 March 2022
100%
100%
Body corporate (Australia)
Australia
MME Horizon Warehouse Trust8
19 December 2018
100%
100%
Trust (Australia)
Australia
MME Horizon 2020 Trust8
25 August 2020
100%
100%
Trust (Australia)
Australia
MME Autopay 2021 Trust8
23 November 2021
100%
100%
Trust (Australia)
Australia
MME PL Trust 2022-18
12 May 2022
100%
100%
Trust (Australia)
Australia
MME Autopay ABS 2024-1 Trust8
25 January 2024
100%
–
Trust (Australia)
Australia
MME PL 2024-1 Trust8
18 May 2024
100%
–
Trust (Australia)
Australia
MME Share Plan Trust9
7 December 2020
100%
100%
Trust (Australia)
Australia
SocietyOne Funding Trust No. 110
15 March 2022
–
100%
Trust (Australia)
Australia
SocietyOne PL 2021-1 Trust8
15 March 2022
100%
100%
Trust (Australia)
Australia
SocietyOne PL 2023-1 Trust8
19 May 2023
100%
100%
Trust (Australia)
Australia
SocietyOne Funding Trust No. 28
15 March 2022
100%
100%
Trust (Australia)
Australia
SocietyOne Personal Loans Trust11
15 March 2022
–
–
Trust (Australia)
Australia
ListReady (NZ) Pty Limited
14 April 2020
100%
100%
Body corporate
(New Zealand)
New Zealand
MoneyMe Financial Group (UK) Limited
21 October 2020
100%
100%
Body corporate
(United Kingdom)
United
Kingdom
2024 Annual Report
53
1 No entity within the Group is either a partner in a partnership or a participant in a joint venture.
2 MoneyMe Limited is the Parent Company of the Group.
3 Owns the residual income units relating to MME Horizon Warehouse Trust, MME Horizon 2020 Trust, MME Autopay 2021 Trust, MME PL Trust 2022-
1, MME Autopay ABS 2024-1 Trust, MME PL 2024-1 Trust and SocietyOne PL 2023-1 Trust, and also owns 100% of the shares of MoneyMe TM Pty
Limited.
4 Owns 100% of the shares of ListReady Pty Limited, RentReady Pty Limited, ListReady (NZ) Pty Limited and Price Enquiry Pty Limited.
5 Owns 100% of the shares of MoneyMe Financial Group (UK) Limited.
6 On 8 September 2023, S.One SPV Pty Limited was voluntarily deregistered after an application by the Group to the Australian Securities and Investments
Commission (ASIC). S.One SPV Pty Limited’s exit from the Group has no impact on the Group’s financial results.
7 Owns the residual income units relating to SocietyOne PL 2021-1 Trust and SocietyOne Funding Trust No. 2. SocietyOne Australia Pty Ltd is also the
trustee of SocietyOne P2P Lending Trust.
8 Ownership reflects capital and residual income unit ownership.
9 The purpose of the Trust is to support management of the MME Employee Equity Incentive Plan.
10 SocietyOne Funding Trust No. 1 was terminated on 2 July 2023. The trust’s termination reflects the transfer of assets from SocietyOne Funding Trust
No. 1 to SocietyOne PL 2023-1 Trust as part of the planned term-out.
11 The Group holds assets on trust for investors in the SocietyOne Personal Loans Trust. The Group holds no units in SocietyOne Personal Loans Trust,
however, has power over the relevant activities of the structured entity. The Group is exposed to variable returns from its involvement in the structured
entity and has the ability to affect its returns, therefore the Group consolidates the structured entity in the financial statements. The trust is a Structured
Entity such that voting or similar rights are not the dominant factor in deciding who controls the entity.
2. New and amended accounting standards
The Group has assessed that there are no new or amended accounting standards for this reporting period that are likely to have
a material impact for this report.
3. Material accounting policies
3.1 Basis of preparation
3.1.1 Statement of compliance
The Group is a for-profit business which is publicly accountable. The Financial Report is a general-purpose financial report, which
has been prepared in accordance with the Corporations Act 2001 (Cth) and authoritative pronouncements of the Australian
Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS).
The Group has adopted all the new and revised standards and interpretations issued by the AASB that are relevant to its
operations and effective for the current financial year.
The Consolidated Financial Statements were authorised for issue in accordance with a resolution of the Directors on the date as
set out in the Directors’ Declaration.
3.1.2 Basis of accounting
The Consolidated Financial Statements have been prepared on the basis of historical cost, except for the revaluation of certain
financial instruments as appropriate. Cost is based on the fair values of the consideration given in exchange for assets. In
addition, the financial statements have been prepared using the accrual basis of accounting, except for the Consolidated
Statement of Cash Flows.
3.1.3 Basis of consolidation
The Consolidated Financial Statements incorporate the assets and liabilities of all controlled entities of MoneyMe Limited as at 30
June 2024 and the results of all controlled entities for the twelve months then ended (for newly formed controlled entities since
establishment date or acquired entities since acquisition date).
Controlled entities are all entities over which the Company has control. Control is achieved when the Company:
• has power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee);
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power over the investee to affect its returns.
Consolidation of an entity begins when the Company obtains control over the entity and ceases when the Company loses
control of the entity. Specifically, income and expenses of an entity acquired or disposed of during the year are included in the
Consolidated Statement of Profit or Loss and Other Comprehensive Income from the date the Company gains control until the date
when the Company ceases to control the entity.
All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the
Group are eliminated in full upon consolidation.
3.1.4 Going concern
At the time of approving the financial statements, the Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis
of accounting in preparing the financial statements.
2024 Annual Report
54
Refer to Note 4.2 for further information.
3.1.5 Segment information
Management has determined that the Group has one reporting segment being the provision of consumer finance. The internal
reporting framework is based on the principal activity. The assets as presented relate to the reporting segment, as identified
above. The Group operates predominately in Australia.
3.1.6 Functional and presentation currency
The Financial Statements are presented in Australian dollars, which is the Group’s functional currency.
3.1.7 Rounding
The Group is of a kind referred to in the Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission. Amounts in this report have been rounded off to the nearest thousand dollars in accordance with the Corporations
Instrument 2016/191.
3.1.8 Recognition, classification, and measurement
3.1.8.1 Gross loan receivables
The Group initially recognises gross loan receivables at fair value, net of any transaction costs and subsequently measures them
at amortised cost as:
• the Group’s business model is to collect contractual cash flows for its products until the account with the customer is closed; and
• the Group’s contractual cash flows are solely payments of principal and interest (SPPI) on the principal outstanding.
Transferred loan receivables into the warehouse trusts are still recognised in the Consolidated Financial Statements as the Group:
a. is exposed to, or has rights to, variable equity returns in its capacity as the residual unit holder (or beneficiary as the case may
be) of these trusts;
b. has the ability to impact the variable equity returns in its capacity as the originator of loan receivables and the servicer of
these receivables on behalf of the trusts; and
c. is the sole subscriber to the junior Seller Notes issued by the trusts.
The Seller Notes go towards maintaining the minimum equity contribution (subordination) requirement. In addition to the Seller
Notes, the Group’s asset-backed securitisation program includes multiple classes of notes, which carry a floating interest rate.
The effective interest rate method is applied to loan receivable balances to include related fee income and brokerage
commissions paid. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial instrument, or, where appropriate, a shorter period, to the
net carrying amount on initial recognition. The Group has updated its estimates relating to the effective life of the underlying
financial assets that are used to calculate effective yield income since the prior financial year. The updates reflect a review of
further historic data and the expected effective life of loan receivables. The Group plans to continue to review and update its
estimates in this area for future reporting periods on the same basis.
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset,
the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group
retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the
financial asset and recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the
sum of the consideration received and receivable is recognised in profit or loss.
Loan receivables are written off when the Group has no reasonable expectations of recovering the financial asset (either in
its entirety or a portion of it). This is the case when the Group determines that the borrower does not have assets or sources
of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A write-off constitutes a
derecognition event. In certain cases, the Group estimates the expected subsequent debt sale when measuring ECL. The
recoveries related to subsequent debt sale are recognised as a reduction to impairment expense in the period in which they
are recognised. Due to the maturity of the Group’s debt sale program as at 30 June 2024, the Group is able to recognise an
estimated value of the expected recoveries at period end. The expected recoverable amount receivable from the debt sale
is recognised as a debt sale recovery asset, until received. A true-up/down adjustment is made post-period end to the actual
principal received as part of the debt sale.
3.1.8.2 Interest rate swaps
The Group enters into interest rate swaps to manage its exposure to interest rate risk. These derivatives are recognised initially
at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting
date. The resulting gain or loss is recognised in profit or loss immediately.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is
2024 Annual Report
55
recognised as a financial liability. Derivatives are not offset in the financial statements unless the Group has both a legally
enforceable right and intention to offset.
The realised and unrealised gains and losses from interest rate swaps are classified under interest expense in the Consolidated
Statement of Profit or Loss and Other Comprehensive Income. This approach reflects the use of the interest rate swaps to manage
exposure to interest rate risk, which arises because entities in the Group borrow funds at floating interest rates and lend funds at
fixed interest rates.
For further details on interest rate swaps, refer to Notes 5, 6 and 19.
3.2 Expected credit loss provisioning
3.2.1 Loan receivables
In accordance with AASB 9 Financial Instruments, the Group recognises a loss provision in the Consolidated Statement of Financial
Position for expected credit losses (ECL) relating to its financial assets. Loss allowances for financial assets measured at amortised
cost are deducted from the gross carrying amount of the assets. Net receivable-related provisioning includes an assessment in
relation to the credit risk of undrawn commitments.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls
(i.e., the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group
expects to receive). It consists of three components:
a. Probability of default (PD): is an estimate of the likelihood that a loan receivable will default within a set period.
b. Loss given default (LGD): is an estimate of the loss arising on default.
c. Exposure at default (EAD): is the total value the business is exposed to when a loan receivable defaults.
The Group’s provisioning considers general hardship (hardship). All new business applications undergo credit assessment
in accordance with the Credit Policy and Responsible Lending Policy to establish the underlying credit risk. The Group has
guidelines and solutions for customers experiencing financial hardship after the loan facility has been originated which involves
completion of information gathering, verification and assessment that concludes that the borrower will be unable to continue
to make contractual loan repayments without experiencing hardship. A borrower may be in hardship if they can only repay by
reducing non-discretionary expenses. Hardship receivables have been classified in stage 2, unless they have a 90+ days past due
(DPD) profile, in which case they are classified in stage 3. As at 30 June 2024, hardship receivables were 1.6% of the Group’s
gross loan receivables (30 June 2023: 1.9%).
ECL is collectively assessed and measured by classes of financial assets. The Group applies the three-stage AASB 9 model to
determine the loss allowance of its financial assets as follows:
Stage 1
At initial recognition of financial assets and where there has not been a significant increase in credit risk (SICR) since
origination, an allowance equal to 12-month ECL is recognised. 12-month ECL represents the portion of lifetime ECL
that arises due to default events within 12 months from the reporting date. It is measured as the product of the PD
over the next 12 months, LGD and EAD. The assessment that there has been no increase in credit risk since initial
recognition is made in reference to a loan receivable being less than 30 DPD and not in hardship.
Stage 1 assets exclude any receivables classified in stage 2 or 3.
Stage 2
The Group determines that there has been a significant increase in credit risk since initial recognition when a receivable
exposure is greater than or equal to 30 DPD and less than 90 DPD or if a borrower declares financial difficulty and
applies for hardship. An allowance equal to lifetime ECL is recognised for loans in Stage 2. Lifetime ECL represents
credit losses resulting from default events throughout the expected life of the instrument. The Group recognises a loss
provision for stage 2 assets as a product of the PD for the lifetime of the financial asset, LGD and EAD.
Stage 3
A financial asset is in ‘default’ when one or more contractual payments or loan receivable payments are equal to or
more than 90 DPD. An allowance equal to lifetime ECL is recognised for loans in Stage 3. The Group recognises a
loss provision as a product of the PD for Stage 3 loans, LGD and EAD for a stage 3 asset. A financial asset is written
off when there is no reasonable expectation of recovering the contractual cash flows. In certain cases, the Group
subsequently recovers a portion of the written off amount through debt sales.
Stage 3 assets exclude any receivables classified in stage 1 or 2.
Refer to Notes 4.3 and 10 for further information.
3.2.2 Cash, other receivables, and payables
The Group recognises and measures cash, cash equivalents, other receivables, and payables at amortised cost.
The Group assesses cash and other receivables for expected credit losses on an annual basis. With reference to the simplified
approach, Management have assessed this to not be material, and therefore no provisioning has been recognised in the financial year.
Refer to Note 9 for cash and cash equivalents and Note 14 for other receivables and payables.
2024 Annual Report
56
3.3 Revenue
The Group recognises revenue in accordance with AASB 9 Financial Instruments or AASB 15 Revenue from Contracts with
Customers depending on its nature and classification. Interest income related to loan receivables, which includes all loan
contractual and non-contingent interest, fees charged, and brokerage commission paid to introducers, is measured, and
presented on an effective interest rate basis. Under AASB 9, the effective interest rate method is used on loan receivables,
based on estimated future cash receipts over the expected life of the financial asset. In making their judgement of estimated
future cash flows and expected life of the loan receivables balance, Management have considered the contractual and historical
repayment pattern of the loan receivables.
The Group’s referral commission income has been classified as revenue from contracts with customers and recognised under
AASB 15 at a point in time when the performance obligation has been satisfied. The performance obligation is deemed satisfied
once the lead has been provided to the respective party and is generally payable a month or within a month after the lead has
been provided.
Contingent loan fee income (such as late fees) not classified under the effective interest rate method is reflected as other income
and recognised as received at a point in time.
Refer to Notes 4.4 and 5 for further information.
3.4 Intangible assets (excluding goodwill)
3.4.1 Recognition, classification and measurement
3.4.1.1 Acquired intangibles
Intangible assets acquired in a business combination and recognised separately from goodwill are recognised initially at their fair
value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated
amortisation and accumulated impairment losses.
The acquisition date estimated useful lives of the Group’s acquired intangible assets were 5 to 15 years.
The remaining useful lives of the acquired intangible assets are:
Software:
3 years
Brand Name:
8 years
Broker Relationships: 12 years
3.4.1.2 Internally-generated intangibles
Costs relating to internally developed software are capitalised only when:
• the technical feasibility of completing the intangible asset and commercial viability of the project is demonstrated;
• the Group has an intention and ability to complete the project and use it or sell it;
• the Group can demonstrate how the intangible asset will generate probable future economic benefits;
• there is availability of adequate technical, financial, and other resources to complete the development and to use or sell the
intangible asset; and
• the cost can be measured reliably.
Such costs include payments to external contractors to develop the software, systems and personnel costs of employees directly
involved in the project.
Internally developed software is stated at capitalised cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits
embodied in the specific assets to which it relates. All other expenditure is expensed as incurred.
The applicable estimated useful life of the Group’s internally developed software is 2 to 5 years.
3.4.2 Derecognition and impairment of intangible assets (excluding goodwill)
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the
carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least
annually, and whenever there is an indication that the asset may be impaired.
At the end of each reporting period, the Group reviews the carrying amounts of its intangible assets, including non-financial
assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When
2024 Annual Report
57
it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the
cash-generating unit (CGU) to which the asset belongs. When a reasonable and consistent basis of allocation can be identified,
corporate assets are also allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a
reasonable and consistent allocation basis can be identified.
The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset, for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset
(or CGU) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised estimate
of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.
Refer to Note 11 for further information.
3.5 Goodwill
3.5.1 Recognition, classification and measurement
Goodwill is initially measured as the excess of the sum of the consideration transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of
the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that
are not individually identified and separately recognised. Goodwill has an indefinite useful life and is not amortised but reviewed
for impairment at least annually.
3.5.2 Derecognition and impairment of goodwill
On disposal of a CGU, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s CGUs (or groups of CGUs) expected to
benefit from the synergies of the combination. CGUs to which goodwill has been allocated are tested for impairment annually, or
more frequently when there is an indication that the unit may be impaired.
If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce
the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata, based on the carrying
amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.
Refer to Notes 4.6 and 11 for further information on the impairment assessment, including assumptions used in determining the
recoverable amount of goodwill.
3.6 Taxation
The Company and its wholly-owned Australian resident entities are members of a tax-consolidated group under Australian tax
law. The Company is the head entity of the tax-consolidated group. In addition to its own current and deferred tax amounts, the
company also recognises the current tax liabilities and assets and deferred tax assets arising from unused tax losses and relevant
tax credits of the members of the tax-consolidated group.
3.6.1 Income tax expense or benefit
The income tax expense or benefit represents the sum of the tax currently payable or refund receivable, and the application of
any deferred tax in the period.
3.6.2 Current tax
The tax currently payable or receivable is based on taxable profit for the year. Taxable profit differs from net profit as reported in
the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of the reporting period.
A provision is recognised for those matters for which the tax determination is uncertain, but it is considered probable that there
will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to
become payable.
Current tax is recognised in profit or loss, except where it relates to items that are recognised in other comprehensive income
or directly in equity, in which case, the current tax is also recognised in other comprehensive income or directly in equity
respectively.
2024 Annual Report
58
3.6.3 Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and
liabilities in the 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 and deferred tax assets are recognised to the extent that
it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets
and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates,
and interests in joint ventures, except where the Group can control the reversal of the temporary difference, and it is probable
that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with such investments and interests are only recognised to the extent that it is probable that there will be
sufficient taxable profits against which to utilise the benefits of the temporary differences, and they are expected to reverse in
the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is settled at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised
based on tax laws and rates that have been enacted or substantively enacted at the reporting date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the way the Group
expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
Deferred tax is recognised in profit or loss, except where it relates to items that are recognised in other comprehensive income
or directly in equity, in which case, the deferred tax is also recognised in other comprehensive income or directly in equity
respectively.
3.6.4 Goods and services tax
Revenues, expenses, and assets are recognised net of the amount of goods and services tax (GST), except where the amount of
GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as
part of an item of expense; or for receivables and payables that 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 included in the Consolidated Statement of Cash Flows on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating
cash flows.
Refer to Notes 4.5 and 7 for further information.
3.7 Funding and liquidity
The Group recognises and measures financial liabilities when it enters into the obligation, at its fair value minus, in the case of a
financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial
liability. Transaction costs are defined as incremental costs that are directly attributable to the issue of the financial liability that
would not have been incurred if the Group had not acquired the financial instrument. The effective interest rate method is used
on borrowings to calculate the amortised cost of a financial liability and to allocate fee expenses over the relevant period.
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled, or have
expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable is recognised in profit or loss.
When the Group exchanges with the existing lender one debt instrument into another one with substantially different
terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an
extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially
different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received
and discounted using the original effective rate is at least 10% different from the discounted present value of the remaining cash
flows of the original financial liability. If the modification is not substantial, the difference between: (1) the carrying amount of the
liability before the modification; and (2) the present value of the cash flows after modification is recognised in profit or loss as the
modification gain or loss within other gains and losses.
Refer to Notes 15 and 19 for further information.
2024 Annual Report
59
4. Critical accounting estimates and judgements
4.1 Overview
In the application of the Group’s accounting policies, Management is required to make judgements, estimates and assumptions
about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates.
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. The significant estimates and judgements made have been described below.
4.2 Going concern
The financial statements have been prepared on the going concern basis, which anticipates the continuity of normal business
activities and the realisation of assets and settlement of liabilities in the normal course of business.
During the financial year ended 30 June 2024, the Group recorded a net profit after income tax of $22.7 million (30 June
2023: $12.3 million), had a net asset position of $189.9 million (30 June 2023: $166.1 million) and unrestricted cash and cash
equivalents of $19.8 million (30 June 2023: $16.1 million).
As at 30 June 2024, the Group has undrawn facilities of $565.3 million across its warehouse trusts (30 June 2023: $446.3
million) and as of the date of signing these financial statements has complied with the covenant requirements under its various
funding agreements.
The Group’s cash flow forecast demonstrates 12 months of continued operations with access to funds from operating cash
flows, existing funding arrangements, and other funding sources to support ongoing operations.
The Group’s ability to write new loans on favourable terms and continue as a going concern depends on the performance of
its loan book and its ability to mitigate against its funding risks. In order to mitigate against these funding risks, the Group has
demonstrated an ability to term-out or extend their warehouse arrangements. The Group maintains strong relationships with its
financiers.
The Directors consider there is a clear basis for the Group to continue normal business activities, realise assets and settle
liabilities in the normal course of business and that the Group will continue to operate as a going concern. The Group actively
engages with funders in the normal course of business to extend existing facilities and set-up new arrangements.
Refer to the Operating and Financial Review and Notes 15 and 19 of the Financial Report for further related information.
4.3 Expected credit losses
4.3.1 Loan receivable credit risk and default
ECLs are measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL for stage 2 or stage 3 assets. An
asset moves to stage 2 when its credit risk has increased significantly since initial recognition. AASB 9 Financial Instruments does
not define what constitutes a significant increase in credit risk. The Group judges that the credit risk of an asset has moved to
stage 2 when a loan receivable exposure is greater than or equal to 30 DPD and less than 90 DPD or if a borrower declares
financial difficulty and applies for hardship. The Group judges that a financial asset is in stage 3 when one or more contractual
payments loan receivable payments are equal to or more than 90 days past due.
4.3.2 Base loss allowance calculation
4.3.2.1 Overview
PD constitutes a key input in measuring ECL. PD is an estimate of the likelihood of default over a given time horizon based on
historic customer repayment data. LGD is an estimate of the loss arising on default. They are used to calculate the difference
between the contractual cash flows due and those that the Group would expect to receive.
From FY23, the Group introduced new ECL models to support the focus on continuous improvement in this key judgement area.
These models have been built by an experienced external third party and are reconciled and maintained internally by Management.
4.3.2.2 Autopay loan receivable ECL
The secured Autopay product was launched as a pilot in April 2021. In FY23 and FY24, Autopay has been provisioned based
on benchmarking and book performance reviews to estimate a reasonable provision rate, i.e. using a coverage rate approach to
derive the product’s ECL.
The loss rates and overall coverage rates are benchmarked externally to other asset finance products and how they are
performing in the market.
The Group expects to be able to apply full data modelling as it does for its other assets in future reporting periods in line with
the availability of an appropriate level of historic data.
2024 Annual Report
60
4.3.2.3 Non-Autopay loan receivable ECL
The Group has separate models for its unsecured suite of products, which comprises the variable rate and fixed rate personal
loan (PL), Freestyle and ListReady products.
The variable rate PL and Freestyle modelling applies up to 7 years of the historical data and fixed rate PL modelling applies up to
4 years of the historical data. These are the same metrics used in both FY23 and FY24.
The PD models are developed based on the historical default rates for each segment. PD for fixed rate and variable rate PLs have
been segmented into various groups based on DPD status, product type, and customer Equifax scores and residential status. PD
for PL is further segmented into variable rate PL and fixed rate PL. These are the same metrics used in both FY23 and FY24.
Freestyle PD has been segmented into various groups based on DPD status, Equifax scores and the loan size. LGD is calculated
using historical data of recoveries from loans defaulted in the past. LGD has been segmented into PLs and Freestyle based on
product type to account for different risk profiles and recovery patterns. LGD for PL is further segmented into variable rate PL
and fixed rate PL. These are the same metrics used in both FY23 and FY24.
The credit conversion factor (CCF) is used to assess expected losses from undrawn commitments on Freestyle. The CCF is
calculated through a MONEYME Group-specific modelled CCF. This is the same methodology used in both FY23 and FY24. The
weighted average CCF was 51.0% for FY24 (FY23: 54.0%).
Recovery expectations have been refreshed at a product level in reference to historical data, as well as current and expected
new forward flow debt sale agreements. Recovery expectations have been incorporated into the base ECL models as part of the
LGD calculation. This is the same methodology used in both FY23 and FY24.
The fixed rate PL product was acquired by the Group as part of the SocietyOne acquisition in FY22. As at 30 June 2024, 17.0%
of the fixed rate PL loan receivables portfolio is secured (30 June 2023: 18.0%), while the remaining balances are unsecured.
The Group uses separate models for its fixed rate PL product. The PD model is developed based on the historical default rates
for each segment. LGD is calculated for fixed rate PL product using historical data of recoveries from loans defaulted in the past.
The fixed rate PL ECL model for loan receivables considers the aging of receivables historical collection rates, specific knowledge
of the individual borrower’s financial circumstances and expected performance of the loan receivables portfolio. The calculation
of PDs is a function of internal credit ratings (based on a scorecard) and shared characteristics that are highly correlated to credit
risk such as previous defaults. The LGD associated with the PD used is the magnitude of the ECL in a default event. The LGD is
estimated using historical loss rates considering relevant factors for individual exposures or portfolios. This is the same method
used to calculate PD, LGD and EAD for the secured fixed rate PL product in FY23.
4.3.3 Loss allowance overlay calculations
4.3.3.1 Model risk overlay
Management have applied model risk overlays to address the risk of data modelling errors. Similar to FY23, in FY24 Management
have considered the model risk overlay at an individual product level. Overall, the model risk overlay in FY24 has been reduced
from prior periods as the Group sees continued improvements in its ECL modelling and forecasting.
4.3.3.2 Modelled macroeconomic overlay
Management have also applied a macroeconomic overlay to reflect uncertainty from the broader economic environment.
Macroeconomic overlays for FY23 and FY24 have been determined based on the same overall statistical modelling approach.
This modelling involves regression analysis using historical macroeconomic data sourced from a credible third party to support
the determination of key macroeconomic predictors to be used for scenario modelling.
The principal macroeconomic indicators referenced in the economic scenarios considered for the position at 30 June 2024 are
cash rate and unemployment. This is the same used for the 30 June 2023 position. The models referenced information from the
Australian Prudential Regulation Authority Authorised Deposit-Taking Institution quarterly performance statistics for losses data,
with a set of variables obtained from the Australian Bureau of Statistics including gross domestic product (GDP), GDP growth
rates and headline consumer price index growth.
In FY24, macroeconomic scenario modelling references a base-case forecast from credible third parties, which is adjusted to
determine upside and downside scenarios. This is the same methodology used in FY23. The weightings used in FY24 are 68.0%
for base case scenario (FY23: 68.0%) and 16.0% for the upside and downside scenarios (FY23: 16.0%).
A 100% upside scenario weighting would result in a reduction of the Group’s FY24 provision by $14.4 million to 3.5%. A 100%
downside scenario weighting would result in an increase to the Group’s FY24 provision by $14.4 million to 5.8%.
Refer to Notes 3.1.8 and 10 for further information.
4.4 Fee income and expense recognition
The Group’s interest and fees on loan receivables uses the effective interest rate method that reflects the expected useful life of
the underlying financial asset and the rate that discounts cash flows back to the present value. In making their judgements as to
the expected life of the underlying loan receivables balance and the discount rate applicable, Management have considered the
contractual and historical repayment patterns of the loan receivables. The Group has further updated its estimates relating to the
effective life of the underlying financial assets that are used to calculate effective yield income since the prior reporting period.
The updates reflect a review of further historical data and the expected effective life of loan receivables. The Group plans to
continue to review and update its estimates in this area for future reporting periods on the same basis.
2024 Annual Report
61
The Group’s Autopay and PL products involve distribution via a broker and dealer commission model. Commissions paid for loan
originations are considered within an effective yield calculation and amortised over the expected life of the loan.
Refer to Note 3.3 for further information.
4.5 Taxation
The Group’s current tax balances reflect management’s assessment of the amount of tax payable or receivable in the current
period. This assessment is supported by specialist independent tax advice.
The Group’s deferred tax balances reflect an expectation to recover or settle temporary differences that relate to tax. These
assessments and expectations reflect an interpretation of tax legislation regarding arrangements entered into by the Group and
the application of tax rates that are expected to apply in the period when tax liabilities are expected to settle or tax assets are
expected to be utilised.
Deferred tax asset (DTA) recognition reflects an assessment that it is probable that there will be enough taxable profits against
which to utilise the benefits of the temporary differences and that they are expected to reverse in the foreseeable future.
Management have applied overlay adjustments to all deferred tax asset balances to reflect uncertainties relating to model risk,
business uncertainties and uncertainties that reflect the macroeconomic environment. Management have assessed that it is
probable there will be enough taxable profits against which to utilise the benefits of the temporary tax compared to accounting
differences and that these are expected to reverse in the foreseeable future.
Refer to Note 7 for further information.
4.6 Impairment of intangible assets, including goodwill
Management have determined that no impairment of the intangible assets or goodwill is required for the period ending 30 June
2024.
In determining the recoverable amount of the Group, Management are required to make certain estimates and judgments which
are key inputs in calculating the value in use (VIU). These are:
• The type of valuation model used: management determined that a discounted cash flow (DCF) model is the appropriate
valuation model.
• Financial plans, which include forecasts of loan book growth, net interest margin (NIM), ECL and overheads. Management
recognises that future performance is inherently uncertain, particularly in relation to expected credit losses and NIM. These
outcomes could be favourable or adverse. The financial plan has been subject to significant oversight, review, and stress
testing. It has also been endorsed by the Board.
• The discount rate used in the VIU model, which is a function of the risk-free rate plus the market risk premium, multiplied by
the levered beta of MONEYME’s stock. A dynamic discount rate has been utilised as this best reflects the risk of recourse
debt on the Group’s equity investors. The dynamic discount rate is the implied cost of equity adjusted for recourse debt
across the forecast period.
• The growth rate used in the VIU model, which reflects Management's projections included and approved in the financial plan.
This expected growth is based on prior experience, adjusted for Management’s expectations of the business’ product offering
and the macroeconomic environment in future periods.
• The terminal growth rate used in the VIU model, which is the long-term growth rate reflective of a going concern entity
expected to perform into perpetuity. It is not reflective of Management's expectations of the Group’s growth trajectory,
which exceed the terminal growth rate, and has been used for the purposes of impairment testing only.
The Group plans to continue to review and update its estimates in this area for future reporting periods on the same basis.
Management believe that the potential impacts of the current economic environment have been adequately considered and that
any reasonably possible change in the key assumptions on which the recoverable amount is based would not cause the aggregate
carrying amount to exceed the aggregate recoverable amount of the Group.
Refer to Note 11.3 for further information.
2024 Annual Report
62
5. Other income
2024
2023
Note
$’000
$’000
Referral income
3.3
174
278
Fair value gains on interest rate swaps
–
1,928
Other customer fee income12
6,191
5,870
Other
653
1,142
Total other income
7,018
9,218
12 Relates to contingent customer revenue, including late fees and dishonour charges.
6. Expenses
6.1 Interest expense
2024
2023
Note
$’000
$’000
Interest on borrowings
98,125
89,633
Lease liability interest
12.2
224
172
Fair value losses on interest rate swaps
123
–
Interest expense
98,472
89,805
At 30 June 2024, the Group recognised $2.6 million of interest rate swaps as derivative financial instrument assets in the
Consolidated Statement of Financial Position (30 June 2023: $7.9 million). The $0.1 million net loss recognised in interest expense
(FY23: $1.9 million net gain recognised in other income), reflects $4.2 million fair value loss on interest rate swaps (FY23: $2.6
million), net of $4.1 million interest income received during the financial year (FY23: $4.5 million).
Refer to Notes 3 and 19 for further information on derivative financial instruments.
6.2 Operating expenses
Operating expenses include employee expenses of $20.0 million in FY24 (FY23: $19.5 million). These are attributed across the
sales and marketing expense, product design and development expense, and general and administrative expense categories.
2024 Annual Report
63
2024
2023
$’000
$’000
The components of tax expense comprise:
Current tax
3,968
4,855
Deferred tax
(14,306)
(4,855)
Income tax (benefit)
(10,338)
–
7. Taxation
7.1 Income tax
2024
2023
$’000
$’000
Profit related to group before income tax
12,387
12,286
Less: profit / (loss) related to entities outside the consolidated tax group
353
(1,413)
Adjusted profit related to group before income tax
12,034
13,699
Income tax using the domestic tax rate of 30.0% in 2024 (2023: 30.0%)
3,610
4,110
Effect of expenses that are not deductible
358
745
Recognition of previously unrecognised deferred tax assets
(14,306)
(4,855)
Income tax (benefit)
(10,338)
–
Numerical reconciliation between tax expense and pre-tax accounting profit:
7.2 Net deferred tax
Net deferred tax at
30 June 2023
Recognised in P&L
Net deferred tax at
30 June 2024
$’000
$’000
$’000
Net loan receivables
5,282
(1,044)
4,238
Derivative financial instruments
–
515
515
Intangible asset
(3,530)
(890)
(4,420)
Right-of-use assets
(889)
304
(585)
Property, plant and equipment
122
97
219
Other receivables
25
(2,689)
(2,664)
Borrowings
115
(115)
-
Other payables
60
48
108
Lease liabilities
380
(115)
265
Employee related provisions
280
100
380
IPO costs
1,347
(466)
881
Tax losses
–
14,593
14,593
Net deferred tax asset
3,192
10,338
13,530
2024 Annual Report
64
A DTA has been utilised that reflects an estimate as to the tax recoverable on differences between the carrying amounts of
assets in the Financial Statements and the corresponding tax bases used in the computation of taxable profit as at 30 June 2024.
The carrying amount of deferred tax assets has been reviewed as at 30 June 2024 in reference to the current macroeconomic
environment. It is assessed that there is appropriate certainty to support the reported DTA, with overlays applied, after
considering tax regulations, current economic environment, business plans and probable projected taxable profits.
The additional $10.3 million of DTA recognised in FY24 reflects consideration of:
• The profit reported by the business in FY23 and FY24, and expected future profits against which the on-balance sheet DTA
will be utilised.
• A continued shift in the composition in the Group’s loan receivables portfolio towards secured assets, which in turn has seen
the credit quality of the loan book increase.
• The contracted revenue associated with these receivables.
• The reduction achieved in the Group’s funding and operating costs relative to the Group’s loan receivables growth.
• The momentum in loan receivable originations that is reasonably expected to continue, supported by the core PL, Autopay
and credit card products.
These factors provide sufficient evidence that sufficient taxable profit will be available against which the recognised DTA can and
will be utilised by the Group.
It is noted that the reported DTA excludes $28.2 million (30 June 2023: $42.3 million) of unrecognised DTA arising from
temporary differences (i.e. held off-balance sheet) as part of set overlays that reflect consideration for tax regulations, current
economic environment, business plans and probable projected taxable profits. Of this balance, $18.5 million (30 June 2023:
$31.4 million) relates to accumulated tax losses, capital losses and R&D offsets.
8. Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit attributable to the owners of the Group by the weighted-
average number of ordinary shares outstanding during the financial year, adjusted for ordinary shares issued during the financial
year.
Diluted EPS adjusts the figures used in the determination of basic earnings per share to consider the after-income tax effect of
interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
2024
2023
$’000
$’000
Net profit after income tax
22,725
12,286
No.
No.
Weighted average number of ordinary shares used in calculating basic EPS
795,078,476
321,359,863
Adjustments for calculation of diluted EPS:
Options
–
–
Rights
–
–
Weighted average number of ordinary shares used in calculating diluted EPS
795,078,476
321,359,863
cents
cents
Basic profit per share
2.9
3.8
Diluted profit per share
2.9
3.8
2024 Annual Report
65
10. Net loan receivables
All disclosures in Note 10 include accrued interest and deferred acquisition cost balances where relevant.
10.1 Balances summary
10.1.1 Overview
The provision as a percentage of gross loan receivables has decreased to 4.7% as at 30 June 2024, from 6.6% as at 30 June
2023.
2024
2023
$’000
$’000
Gross loan receivables
1,218,591
1,149,646
Loan receivable provisions
(56,792)
(75,993)
Net loan receivables
1,161,799
1,073,653
Provisions as % gross loan receivables
4.7%
6.6%
9. Operating cash flow reconciliation
2024
2023
$’000
$’000
Net profit after income tax
22,725
12,286
Non-cash items:
Amortisation of commission fees
9,798
5,939
Lease interest expense
224
172
Amortisation on borrowing costs
5,985
4,826
Share-based payments expense
1,100
2,128
Depreciation and amortisation expense
10,946
11,340
Other non-cash operating items
90
(20)
Movements in:
Net loan receivables
(102,048)
176,593
Derivative financial instruments
5,338
1,641
Current tax asset
–
13
Net deferred tax asset
(10,338)
–
Intangible assets
(100)
–
Other receivables
(810)
3,367
Borrowings
5,139
3,401
Employee-related provisions
350
(1,699)
Other payables
821
(11,601)
Total operating cash movements
(50,780)
208,386
2024 Annual Report
66
10.1.2 Gross loan receivable movements
2024
2023
$’000
$’000
Opening balance
1,149,646
1,345,276
Loan receivables originated during the year
626,899
541,686
Payments received
(480,845)
(645,370)
Gross loan receivables written off
(77,109)
(91,946)
Closing balance
1,218,591
1,149,646
10.1.3 Loan receivable provision movements
2024
202313
$’000
$’000
Opening balance
75,993
81,488
Additional provisioning
43,879
71,249
Net loan receivables written off
(63,080)
(76,744)
Closing balance
56,792
75,993
13 The prior year provision movements have been updated to reflect the net release of provisions on write-off. The FY23 closing balance remains
unchanged. This update has also been reflected in the FY23 loan receivable provision movements by impairment stage in Note 10.2.3.
10.2 Loan receivable balances by impairment stage
10.2.1 Drawn gross and provision loan receivable balances by impairment stage
The following table shows movements in gross carrying amounts of loan receivables subject to impairment requirements to net
loan receivables for the prior and current period.
30 June 2024
Stage 1
Stage 2
Stage 3
Total
$'000
$'000
$'000
$'000
Gross loan receivables
1,142,852
54,333
21,406
1,218,591
Loan receivable provisions
(22,744)
(16,537)
(17,511)
(56,792)
Net loan receivables
1,120,108
37,796
3,895
1,161,799
Stage % of gross loan receivables
93.7%
4.5%
1.8%
100.0%
Provisions as % gross loan receivables
2.0%
30.4%
81.8%
4.7%
30 June 2023
Stage 1
Stage 2
Stage 3
Total
$'000
$'000
$'000
$'000
Gross loan receivables
1,061,815
52,847
34,984
1,149,646
Loan receivable provisions
(25,389)
(21,404)
(29,200)
(75,993)
Net loan receivables
1,036,426
31,443
5,784
1,073,653
Stage % of gross loan receivables
92.4%
4.6%
3.0%
100.0%
Provisions as % gross loan receivables
2.4%
40.5%
83.5%
6.6%
2024 Annual Report
67
The Group’s gross loan receivables grew by $68.9 million (6.0%) in line with an increase in originations and a slower repayment
profile reflective of longer-term assets.
The provision as a percentage of gross loan receivables decreased to 4.7% as at 30 June 2024, from 6.6% as at 30 June 2023.
The reduction reflects the Group’s ongoing focus on improving the credit quality of its loan book, by increasing the level
of secured asset lending (which has a materially lower loss rate than unsecured assets), increasing the credit quality of new
unsecured lending and restricting lower credit quality lending. As a result:
• secured assets represented 54.9% of the loan book as at 30 June 2024 (30 June 2023: 43.7%);
• 88.9% of the loan book at 30 June 2024 had an Equifax credit score equal to or above 600, an improvement from 83.2% as at
30 June 2023; and
• net loan write-offs decreased by 17.8% in FY24 from FY23 and there was a reduction in the stage 1 and 2 provisions,
reflecting growth in the Autopay loan book and run-off of the Group’s back-book.
10.2.2 Gross loan receivable movements by impairment stage
The following table shows movements in gross carrying amounts of loan receivables subject to provisioning requirements for the
prior and current period.
30 June 2024
Stage 1
Stage 2
Stage 3
Total
$'000
$'000
$'000
$'000
Opening balance
1,061,815
52,847
34,984
1,149,646
Loan receivables originated during the year
626,899
-
-
626,899
Payments received
(450,960)
(21,439)
(8,446)
(480,845)
Transfers between stages
(94,902)
22,925
71,977
–
Gross loan receivables written off
–
–
(77,109)
(77,109)
Closing balance
1,142,852
54,333
21,406
1,218,591
30 June 202314
Stage 1
Stage 2
Stage 3
Total
$'000
$'000
$'000
$'000
Opening balance
1,279,506
36,128
29,642
1,345,276
Loan receivables originated during the year
541,686
-
-
541,686
Payments received
(596,065)
(29,666)
(19,639)
(645,370)
Transfers between stages
(163,312)
46,385
116,927
-
Gross loan receivables written off
-
-
(91,946)
(91,946)
Closing balance
1,061,815
52,847
34,984
1,149,646
14 The prior year payments received and transfers between stages figures have been updated. The FY23 closing balance remains unchanged.
The above table reflects $1.1 billion, 93.8% (30 June 2023: $1.1 billion, 92.4%) of FY24 closing gross loan receivables being in
stage 1 provisioning.
The Group’s gross loan receivables consist of principal outstanding, accrued interest and deferred acquisition costs. Deferred
acquisition costs represent 4.2% or $51.2 million of the total gross loan receivable balance as at 30 June 2024 (30 June 2023:
2.5%, $29.2 million).
The Group’s gross loan receivables increased from the 30 June 2023 position, reflecting increased originations period-on-period.
Further, the Group saw a reduction in loan receivables written off in FY24 as a result of improving credit quality receivables and
enhanced origination and collection processes.
2024 Annual Report
68
30 June 2024
Stage 1
Stage 2
Stage 3
Total
$'000
$'000
$'000
$'000
Opening balance
25,389
21,404
29,200
75,993
Loan receivables originated during the year
24,678
-
-
24,678
Transfers between stages and risk parameter changes
(27,323)
(4,867)
51,391
19,201
Net loan receivables written off
-
-
(63,080)
(63,080)
Closing balance
22,744
16,537
17,511
56,792
Stage 1
Stage 2
Stage 3
Total
30 June 2023
$'000
$'000
$'000
$'000
Opening balance
40,225
15,168
26,095
81,488
Loan receivables originated during the year
17,029
-
-
17,029
Transfers between stages and risk parameter changes
(31,865)
6,236
79,849
54,220
Net loan receivables written off
-
-
(76,744)
(76,744)
Closing balance
25,389
21,404
29,200
75,993
The above table reflects a $19.2 million (25.3%) decrease in the Group’s loan receivable provision from $76.0 million as at 30
June 2023 to $56.8 million as at 30 June 2024.
The reduction in the Group’s loan receivable provision is primarily due to improvements in the Group’s modelled outputs. In
particular, the Group’s LGD and PD modelling outputs improved, reflecting data updates in FY24 that reflect the higher credit
quality loan book at 30 June 2024 when compared to 30 June 2023.
The key externally forecasted inputs for the Group’s modelled macroeconomic overlays (interest rate and unemployment rate)
have seen a reduction from 30 June 2023 to 30 June 2024, reflecting a slightly more favourable outlook.
96.1% of undrawn balances arise from stage 1, with a small portion coming from the potential for stage 2 borrowers to cure and
subsequently redraw. Net undrawn loan receivables as at 30 June 2024 were $30.9 million (30 June 2023: $41.9 million). This
comprised gross undrawn loan receivables of $32.6 million (30 June 2023: $44.1 million) less provision balance $1.7 million (30
June 2023: $2.2 million).
Refer to Notes 3.2 and 4.3 for further information.
10.2.3 Loan receivable provision movements by impairment stage
The following table shows movements in provisions for the prior and current period
2024 Annual Report
69
11. Intangible assets including goodwill
11.1 Intangible assets (excluding goodwill)
30 June 2024
Other
software
Acquired
software
Brand
names
Broker
relationships
Total
$'000
$'000
$'000
$'000
$'000
Opening balance
10,019
13,289
4,886
4,563
32,757
Additions - in the ordinary
course of business
4,923
–
–
–
4,923
Amortisation expense for
the period
(3,165)
(4,772)
(562)
(351)
(8,850)
Closing balance
11,777
8,517
4,324
4,212
28,830
Intangible assets at cost
19,866
18,757
5,613
5,018
49,254
Accumulated amortisation
(8,089)
(10,240)
(1,289)
(806)
(20,424)
Closing balance
11,777
8,517
4,324
4,212
28,830
30 June 2023
Other
software
Acquired
software
Brand
names
Broker
relationships
Advertising
contract
Total
$'000
$'000
$'000
$'000
$'000
$'000
Opening balance
5,665
18,757
5,613
5,018
1,000
36,053
Additions - in the ordinary
course of business
6,230
–
–
–
–
6,230
Amortisation expense for
the period
(1,866)
(5,468)
(727)
(455)
(1,000)
(9,516)
Impairment expense for the
period
(10)
–
–
–
–
(10)
Closing balance
10,019
13,289
4,886
4,563
–
32,757
Intangible assets at cost
14,943
18,757
5,613
5,018
1,000
45,331
Accumulated amortisation
(4,924)
(5,468)
(727)
(455)
(1,000)
(12,574)
Closing balance
10,019
13,289
4,886
4,563
–
32,757
The Group’s intangible asset balance primarily relates to assets that were recognised upon acquisition of SocietyOne on 15
March 2022. In line with guidance outlined in AASB 3 Business Combinations, the Group identified and recognised $30.4 million
of intangible assets on the date of acquisition, which included software, brand names, broker relationships and advertising
contract. The Group has reviewed the expected useful lives for each of the acquired assets for the current reporting period. The
Group revised the useful life for software programs no longer in use given the completed migration of the SocietyOne back-book
onto the Horizon platform.
Other software intangible assets held at 30 June 2024, with closing balance $11.8 million (30 June 2023: $10.0 million), is made
up of internally generated intangible assets relating to Horizon as well as external costs incurred in developing the Group’s
intangible assets. Horizon supports the Group’s loan receivable processes, from origination, underwriting and settlement to
servicing, securitisation funding and collection management. Capitalised spend reflects both the addition of new product
capability to the system, and further system capability enhancements, such as Artificial Intelligence capability developments. The
Horizon asset is being amortised on a straight-line basis over 5 years.
Refer to Note 3.4 for further information.
2024 Annual Report
70
11.2 Goodwill
The Group recognised goodwill of $63.5 million upon acquisition of SocietyOne in FY22. There has been no impairment of
goodwill in FY23 and FY24.
11.3 Impairment of intangible assets
11.3.1 Impairment testing approach
The Group performed an impairment test as at 30 June 2024. Management has considered the Group’s reporting and operating
segments and determined that the Group is one CGU for the purposes of allocating the intangible assets balance of $92.3 million
($63.5 million of goodwill and $28.8 million of intangible assets).
The impairment test compared the Group’s recoverable amount against its carrying value as at this date. The recoverable amount
of the Group as a CGU is determined based on a VIU calculation. The VIU is based on a forecast budget prepared by management
and approved by the directors for a 4-year period. The cash flows beyond the 4-year forecast period are extrapolated based on the
perpetual growth method of calculating terminal value. This method assumes that the business will continue to generate free cash
flow (FCF) at a normalised state forever. The assumption used for the terminal growth rate is stated in the below table.
11.3.2 Key judgements and assumptions
The following table sets out the key assumptions used by Management to determine the VIU.
The Group has considered different scenarios in its determination of its VIU. These consist of:
1) Base case: Current management forecasts for the business in the macroeconomic environment:
• Loan book growth – moderate growth is assumed in the immediate term in reference to the current macroeconomic
environment, increasing in line with expected improvements in the environment.
• Expected credit losses and provisions – ratios projected to improve over time in line with the credit quality of the underlying
receivables and macroeconomic environment.
• Net interest margin – expected to remain stable.
• Discount rate – dynamic discount rate (~13%) used over the forecast period reflecting the projected capital structure of the Group.
2) Stress scenario: Management have considered several stress scenarios which apply variations to expected credit losses, net
interest margin, the discount rate and the growth rate which reflect the most judgmental model inputs.
a. Discount rate – reflected through the application of a range of discount rates to the base case. These discount rates are
reflective of the risks posed by other potential macroeconomic situations, including a downturn of the global economy,
reduced access to capital markets for funding planned growth and failure to realise anticipated growth.
b. Stress scenario combining the following – compared to the base case, a 100 bps increase in expected credit losses in FY25 with
a subsequent flow-on increase in future years, a 20% reduction in loan book originations and a reduction in net interest margin.
The recoverable amount of the Group exceeded the carrying value in all stress-tested scenarios.
Management believes that no reasonably possible change in any of the key assumptions would cause the carrying value to
exceed the recoverable amount.
Key assumptions
Description
Financial plan
This reflects Management's 4-year forecast to FY28 and was approved by the Group's Board in July 2024.
Growth rate
Derived primarily by the growth expected in the Group's loan book as forecasted in the financial plan. Moderate
growth is assumed in the immediate term based on past performance, Management's expectations of market devel-
opment and considering the impact of current macroeconomic environment, interest rates and economic outlook.
Pre-tax dynamic
discount rate
A pre-tax dynamic discount rate of ~13% (expressed on a weighted average basis) was applied over the forecast
period.
Terminal growth
The long-term growth rate of 2.5% is reflective of a going concern entity expected to perform into perpetuity.
Scenario
Headroom as at 30 June 2024
Base case
90%
Stress test scenarios:
a) Discount rate stress (+1%)
71%
b) Combined stress scenario
38%
2024 Annual Report
71
12. Leases
The Group’s lease commitments during the financial year relate to office premises leased at 131 Macquarie Street, Sydney NSW
2000 and 352 Hunter Street, Newcastle NSW 2300.
The Group also has a commitment related to a short-term property lease that is accounted for according to AASB 16 Leases
paragraph 6, with lease payments being expensed when incurred. The expense incurred in relation to this lease to 30 June 2024
was $0.07 million (30 June 2023: $0.06 million).
All the above leases have been recognised in accordance with AASB 16 Leases as follows.
12.1 Right-of-use assets
15 2023 amount relates to adjustment for the extension of the Sydney lease for a further two years. 2024 amount relates to an adjustment to the
Newcastle lease schedule.
16 2023 amount relates to adjustment for the extension of the Sydney lease for a further two years. 2024 amount relates to an adjustment to the
Newcastle lease schedule.
12.2 Lease liabilities
2024
2023
$’000
$’000
Opening balance
2,961
2,500
Lease adjustment15
92
1,399
Depreciation expense for the period
(1,106)
(938)
Closing balance
1,947
2,961
2024
2023
$’000
$’000
Opening balance
3,117
2,662
Interest accrual in the preiod
224
172
Payments in the period
(1,257)
(1,116)
Lease adjustment16
92
1,399
Closing balance
2,176
3,117
Net lease related (liability)
(229)
(156)
13. Property, plant and equipment
2024
2023
$’000
$’000
Opening balance
3,082
1,380
Additions - in the ordinary course of business
73
2,610
Disposals
–
(22)
Movements in accumulated depreciation
(975)
(886)
Closing balance
2,180
3,082
Property, plant and equipment at cost
5,176
5,102
Accumulated depreciation
(2,996)
(2,020)
Total property, plant and equipment
2,180
3,082
2024 Annual Report
72
14.2 Other payables
2024
2023
$’000
$’000
Trade payables
1,381
1,906
Accrued expenses
1,831
2,954
Customer credit balances
2,094
794
Other payables
647
545
Total other payables
5,953
6,199
Property, plant, and equipment includes office fit-out costs with a written down value of $2.0 million as at 30 June 2024 (30
June 2023: $2.8 million).
Property, plant, and equipment are stated at cost less accumulated depreciation. Cost includes expenditure that is directly
attributable post-acquisition. The Group’s policy is to provide for any “make-good” property lease-related requirements.
The depreciable amount of all fixed assets is depreciated on straight-line basis over their estimated useful lives to the entity,
commencing from the time the asset is classified as ready for use. Leasehold improvements are amortised over the shorter of
either the unexpired period of the lease or the estimated useful lives of the improvements. The estimated useful life, residual
values and depreciation method are reviewed at the end of each annual reporting period.
The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable amount from
these assets. The gain or loss arising on disposal or retirement of an item of plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
The estimated useful lives used in calculation of depreciation ranges from 1 to 8 years in relation to the underlying asset being
depreciated.
2024
2023
$’000
$’000
Delinquent assets recoverable17
11,779
7,913
Prepayments18
2,146
4,868
Net GST receivables19
4,896
27
Other receivables
660
1,614
Total other receivables
19,481
14,422
14. Other receivables and payables
14.1 Other receivables
17 Reflects expected recoveries on loan receivables written off, including recoveries from the Group’s debt sale program.
18 Predominantly relates to marketing placements largely in the form of advertisements with a third-party provider that must be fully utilised by 31
December 2024. Any unused media placements will lapse after this date.
19 Reflects GST receivable expected following review of the Group’s eligibility to claim reduced input tax credits on certain expenses.
The other receivables balance is considered to have low credit risk following an assessment of the relevant counterparties.
2024 Annual Report
73
15. Borrowings
15.1 Borrowings balances
The table below includes effective interest rate related balances.
2024
2023
$’000
$’000
Opening balance
1,115,421
1,358,271
Drawdowns
337,404
299,752
Repayments
(301,298)
(551,633)
Other
15,184
9,031
Closing balance
1,166,711
1,115,421
The Group sells loan receivables to special purpose vehicle securitisation warehouses through its asset-backed securitisation
program. The Group owns all units of the special purpose vehicle trusts, entitling it to 100% of the net income distribution. If
a trust warehouse facility is not renewed or should there be a default under the existing terms and conditions, the warehouse
facility funder will not have a right of recourse against the remainder of the Group.
Transaction costs incurred that are attributable to the issue of borrowings or significant modification of existing borrowing
terms are capitalised and amortised across the respective borrowing term on a straight-line basis. During FY24, $2.5 million of
transaction costs were capitalised (FY23: $4.7 million).
2024
2023
$’000
$’000
MME Horizon 2020 Warehouse Trust20
411,854
292,831
MME Autopay 2021 Trust
360,636
314,597
SocietyOne Funding Trust No. 2 20
196,215
111,716
MME Horizon Warehouse Trust
88,863
83,995
MME PL Trust 2022-1
–
96,684
SocietyOne PL 2021-1 Trust
–
57,590
SocietyOne PL 2023-1 Trust
76,513
132,056
SocietyOne Personal Loans Trust20
26,383
26,148
MoneyMe Financial Group Pty Limited21
58,127
34,029
Gross loan receivables
1,218,591
1,149,646
20 At 30 June 2024, the SocietyOne Personal Loans Trust had a $26.4 million investment in MONEYME assets, $14.2 million of which reflects a direct
investment in MONEYME assets and the remaining $12.2 million as indirect investment through note holdings in the MME Horizon 2020 Warehouse Trust
and the SocietyOne Funding Trust No. 2. The MME Horizon 2020 Warehouse Trust and the SocietyOne Funding Trust No. 2 in the table above exclude
the gross loan receivables funded by the mezzanine note investments completed by SocietyOne Personal Loans Trust.
21 The approach for the current financial year has been modified to account for the accrued interest and deferred acquisition cost balances under
MoneyMe Financial Group Pty Limited. The prior year balances have also been adjusted accordingly.
Refer to Note 19 for further information including the drawn balance, funding limits and undrawn balances of borrowing
facilities, as well as information on borrowings maturity.
15.2 Gross loan receivables by funding source
The table below includes effective interest rate related balances.
2024 Annual Report
74
16. Employee related provisions and Key Management Personnel (KMP)
remuneration
16.1 Employee related provisions
2024
2023
$’000
$’000
Annual leave provision
1,324
1,294
Long service leave provision
493
348
Other provisions
958
783
Closing balance
2,775
2,425
Provisions are recognised for employee benefits accumulated as a result of employees rendering services up to the reporting
date.
KMPs are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the
Group. Refer to the Remuneration Report for further information.
16.2 KMP remuneration
2024
2023
$’000
$’000
Short-term employee benefits
2,319
1,895
Post-employment benefits
141
108
Share-based payments
270
469
Total KMP remuneration
2,730
2,472
17. Share capital
Date
Shares (No.)
Issue price ($)
$’000
Ordinary and treasury shares
30 June 2023
800,078,476
203,428
Elimination of inter-group transactions22
(5,000,000)
–
–
Ordinary shares
30 June 2024
795,078,476
203,428
22 Elimination of inter-group transaction between MoneyMe Limited and the MME Share Plan Trust. The elimination amount of 5,000,000 shares includes
treasury shares issued in prior periods.
There were no share capital issuances during FY24.
2024 Annual Report
75
23 The prior year share option and performance rights have been adjusted due to an incorrect allocation between the share option and performance rights
expense in FY23. The expense / (benefit) and overall prior year closing balance remain unchanged.
18. Reserves
18.1 Reserves summary
The Group operates an ownership-based scheme for eligible employees and Directors to assist with motivation, retention, and
reward. Under this scheme, employees or Directors may be granted equity-settled performance rights or options over shares in
exchange for rendering services.
Note
2024
2023
$’000
$’000
Share options
272
293
Performance rights
6,385
4,236
Opening balance
6,657
4,529
Share option (benefit)
18.2
(272)
(21)
Performance right expense
18.3
1,372
2,149
Share-based payment expense / (benefit)23
1,100
2,128
Share options
–
272
Performance rights
7,757
6,385
Closing balance
7,757
6,657
18.2 Share options
30 June 2024
Opening balance
Granted
Cancelled
Exercised
Closing balance
Exercisable at the
end of the period
No.
S2 2020
818,686
–
(818,686)
–
–
–
Total
818,686
–
(818,686)
–
–
–
30 June 2023
Opening balance
Granted
Cancelled
Exercised
Closing balance
Exercisable at the
end of the period
No.
S1 2020
867,490
–
(867,490)
–
–
–
S2 2020
818,686
–
–
–
818,686
818,686
Total
1,686,176
–
(867,490)
–
818,686
818,686
The Group’s last remaining series of options (S2 2020) cancelled in FY24 and the remaining benefit of $0.3 million was released.
2024 Annual Report
76
30 June 2024
Opening
balance
Granted
Cancelled
Exercised
Closing
balance
Exercisable at the
end of the period
No.
S2 2020 EPR
718,000
–
(49,000)
(669,000)
–
–
S3 2020 EPR
300,000
–
–
–
300,000
300,000
S1 2021 EPR
1,565,000
–
(121,870)
(964,002)
479,128
479,128
S1 2022 EPR
1,752,032
–
(289,278)
(379,607)
1,083,147
388,923
S1 2023 EPR
2,681,291
–
(469,984)
–
2,211,307
–
S2 2023 EPR
450,626
–
–
(300,301)
150,325
150,325
S1 2024 EPR
–
61,201,000
(1,562,500)
–
59,638,500
–
S2 2024 EPR
–
553,501
–
(553,501)
–
–
Total
7,466,949
61,754,501
(2,492,632)
(2,866,411)
63,862,407
1,318,376
30 June 2023
Opening
balance
Granted
Cancelled
Exercised
Closing
balance
Exercisable at the
end of the period
No.
S2 2020 EPR
887,000
–
(169,000)
–
718,000
718,000
S3 2020 EPR
300,000
–
–
–
300,000
300,000
S1 2021 EPR
2,037,500
–
(472,500)
–
1,565,000
782,500
S1 2022 EPR
2,259,532
–
(507,500)
–
1,752,032
–
S1 2023 EPR
–
3,056,551
(290,260)
(85,000)
2,681,291
–
S2 2023 EPR
–
450,626
–
–
450,626
450,626
Total
5,484,032
3,507,177
(1,439,260)
(85,000)
7,466,949
2,251,126
18.3 Performance rights
Current period
expense ($’000)
Fair value per
right ($)
Grant date
(contractual)
Projected vesting
date 1 (contractual)
Projected vesting
date 2 (contractual)
S2 2020 EPR
–
1.25
12/2019
08/2021
08/2022
S3 2020 EPR
–
1.25
12/2019
11/2020
11/2021
S1 2021 EPR
875
1.46
12/2020
08/2021
08/2022
S1 2022 EPR
(113)
1.87
12/2021
08/2023
08/2024
S1 2023 EPR
228
0.35
01/2023
08/2025
08/2026
S2 2023 EPR
–
0.35
01/2023
01/2023
–
S1 2024 EPR
382
0.08
04/2024
08/2026
08/2027
S2 2024 EPR
–
0.08
04/2024
04/2024
–
The Group issued employee performance rights (EPRs) in 2024 and 2023. EPRs have $nil consideration, $nil exercise price and
are equity settled. EPRs issued are subject to business and individual performance conditions for a determined performance
period. Performance conditions for the 2024 issuances include the Group achieving its revenue targets, Environmental, Social
and Governance targets and Total Shareholder Return targets, and their individual employee targets. EPRs also have a vesting
condition for the holder to be contracted to provide services to the Group at the time of vesting.
2024 Annual Report
77
19. Financial risk management
19.1 Overview
The Group’s activities expose it to a variety of financial risks: market risk (such as interest rate risk), credit risk and liquidity risk.
The Group uses different methods to measure and manage the different types of risks to which it is exposed. These methods
include sensitivity analysis in the case of interest rate, ageing analysis to manage credit risk and cash flow forecasting to monitor
and manage liquidity risk.
Risk management is carried out by senior Management, identifying and evaluating financial risks within the Group and reporting
to the Board on a regular basis. The Group's key risks and exposures are set out below.
19.2 Credit risk
MONEYME’s Chief Credit Risk Officer has primary responsibility for credit risk management with oversight by the Credit
Commitee and Board.
The Group’s exposure to credit risk arises through the potential risk a counterparty will default on its contractual obligations,
with the maximum exposure of the risk equal to the carrying amount of these receivables at the end of the reporting period
being $1.2 billion (30 June 2023: $1.1 billion).
The Group utilises its proprietary risk decisioning to mitigate against credit risk, leveraging multiple data points including credit
agency information and bank statement data, to confirm suitability and appropriate credit limits prior to the issuance of credit to
individual borrowers.
Gross loan receivables do not have collateral held as security except for the Autopay and SocietyOne secured personal loan
products. Collateral security is typically taken over a motor vehicle for Autopay related advances. A loss provision is calculated in
relation to all products, regardless of whether they have collateral held as security.
The business has continued to originate loan receivables with credit decision rules executed through Horizon and decision
settings calibrated for the current and expected changes to the environment. Regular and enhanced reporting and analysis of
loan receivable performance and new originations has continued to be completed to inform and guide timely and appropriate
decision-making.
The Group continues to monitor credit performance of the book against external indicators such as inflation and unemployment
rates along-side book specific credit performance measures for any changes to credit appetite settings.
The Group also manages the credit risk profile of its book through a focus on loan portfolio diversification. This is assessed on
an ongoing basis in relation to key criteria that include customer residency and loan purpose, among other factors. As at 30 June
2024, gross loan receivables reflected:
• 31.0% in NSW, 26.4% VIC, 24.2% QLD and 8.6% WA.
• 9.6% in Construction, Building & Architecture, 6.7% in Logistics, Transport & Supply, 6.4% in Medical & Healthcare, 5.4% in
Manufacturing, Trades and Services and 3.4% in Retail.
• 7.2% to borrowers aged from 18 to 25, 29.8% to borrowers aged 26 to 35 and 62.9% to borrowers 36 and over.
• 63.5% to borrowers in full-time employment, 5.9% to borrowers in part-time employment, 6.8% to self-employed, 4.3% to
casual employment borrowers and 19.2% to other borrowers.
• An average Equifax credit score of 763 as at 30 June 2024 (30 June 2023: 727).
The Group monitors the portfolio to avoid disproportionate exposures to any single debtor or its monitored groups of debtors.
Once a loan receivable has been advanced, the Group regularly reviews customer collections and balances in arrears in line with
the approach used for provision staging. Loan receivables that are deemed uncollectable are written off by the Group.
The Group regularly reviews the adequacy of the provisioning to ensure that it is sufficient for financial reporting purposes. The
provision is determined through management’s best estimates of losses based on historical experience and their experienced
judgement. The Group measures the loss allowance for a financial instrument at an amount equal to the lifetime ECL if the credit
risk on that financial instrument has increased significantly since initial recognition. The maximum exposure to credit risk at the
reporting date to recognised financial assets is the carrying amount disclosed in the Consolidated Statement of Financial Position
and Notes to the Consolidated Financial Statements.
Refer to Note 10 for further information.
19.3 Market risk
MONEYME’s Group Treasurer has primary responsibility for market risk management with oversight by the Asset & Liability
Committee and the Board Audit & Risk Management Committee.
Market risk is the risk that changes in market prices 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. The Group’s exposure to market risk arises primarily through movements in revenue and
expenses caused by interest rate changes and, to a lesser extent, foreign currency rate changes.
2024 Annual Report
78
As at 30 June 2024, 77.1% of the Group’s total gross loan receivables are variable rate loans (30 June 2023: 72.9%). In the event
of a movement in the RBA cash interest rate, which impacts the cost of funds for these loans, the Group reviews its pricing. The
Group has been passing on increases in interest rates to customers to the extent required to maintain its net interest margin. The
Group will continue to review its pricing in the coming financial year, as it appropriately manages its market risk.
The Group is exposed to interest rate risk because entities in the Group borrow funds at floating interest rates and lend a portion
of funds at fixed interest rates. The Group earns fixed interest from $279.2 million of its loan receivables as at 30 June 2024
(30 June 2023: $313.3 million). The interest rate risk is managed by the Group using interest rate swap contracts. As at 30 June
2024, 70.4% of the fixed rate loan book is covered by interest rate swaps (30 June 2023: 73.6%). The Group is exposed to AUD
BBSW. The exposures arise on derivatives and non-derivative financial assets and liabilities (e.g. debt).
The sensitivity below shows the effect of a 1.0% movement in interest rates on the interest rate swaps. This represents the fair
value mark-to-market (MTM) movements of the swap. This is a non-cash impact which will reduce to zero over the life of the
swap. The second sensitivity shows the net impact of a 1.0% movement in interest rates on the unhedged fixed rate loan book.
No sensitivity is presented on the variable rate loan book because the market risk is effectively managed by passing increases in
interest rates to the customer.
2024
2023
$’000
$’000
Net P&L impact of interest rate swaps24
1% increase in interest rates
2,021
3,401
1% decrease in interest rates
(2,021)
(3,401)
2024
2023
$’000
$’000
Net P&L impact on unhedged fixed rate loan book
1% increase in interest rates
(803)
(543)
1% decrease in interest rates
803
543
24 This represents the fair value MTM movements of the swap. This is a non-cash impact which will reduce to zero over the life of the swap.
The Group’s exposure to foreign exchange risk is minimal and is deemed not to be material in the current and prior financial year.
19.4 Liquidity risk
MONEYME’s Group Treasurer has primary responsibility for liquidity risk management with oversight by the Asset & Liability
Commitee and the Board.
The Group’s exposure to liquidity risk arises through the potential imbalance of cash outflows exceeding inflows. Trade payables
and other financial liabilities mainly originate from the financing of loan receivables, other fixed assets, and investments in
working capital.
Liquidity risk is managed through the monitoring of cash flow forecasts to actuals to ensure that liability obligations are met
when they fall due. The Group’s balance sheet shows an excess of assets over liabilities as at 30 June 2024 of $189.9 million
(30 June 2023: $166.1 million), with the Group having access to $565.3 million (30 June 2023: $446.3 million) in committed
undrawn debt facilities to fund continued growth of the loan portfolio. The Group’s current assets, available financing facilities,
and ongoing positive net cash flows continue to be sufficient to satisfy all payment obligations within the timeframes required.
Management have undertaken an analysis to look at the earliest terms of which contractual obligations may be paid and assessed
the cash flows required.
The following tables show all contractual payments and receivables for settlement, repayments and interest resulting from
recognised financial assets and liabilities, including the impact of discounting.
2024 Annual Report
79
25 The prior year net loan receivables balance has been updated to incorporate the contractual cash flows over time, as opposed to maturity – on which
basis it was prepared previously.
30 June 2024
Less than
1 year
1 to 5 years
Greater than
5 years
Total amounts
$’000
$’000
$’000
$’000
Cash and cash equivalents
73,137
493
–
73,630
Other receivables
19,481
–
–
19,481
Net loan receivables
286,098
811,305
64,396
1,161,799
Derivative financial instruments
–
2,596
–
2,596
Total financial assets
378,716
814,394
64,396
1,257,506
Other payables
5,953
–
–
5,953
Borrowings
–
1,096,312
70,399
1,166,711
Lease liabilities
1,121
1,055
–
2,176
Total financial liabilities
7,074
1,097,367
70,399
1,174,840
Net maturity
371,642
(282,973)
(6,003)
82,666
30 June 2023
Less than
1 year
1 to 5 years
Greater than
5 years
Total amounts
$’000
$’000
$’000
$’000
Cash and cash equivalents
91,509
205
–
91,714
Other receivables
14,422
–
–
14,422
Net loan receivables25
276,527
746,346
50,780
1,073,653
Derivative financial instruments
–
7,934
–
7,934
Total financial assets
382,458
754,485
50,780
1,187,723
Other payables
6,199
–
–
6,199
Borrowings
–
887,684
227,737
1,115,421
Lease liabilities
1,030
2,087
–
3,117
Total financial liabilities
7,229
889,771
227,737
1,124,737
Net maturity
375,229
(135,286)
(176,957)
62,986
2024 Annual Report
80
The Group’s principal source of funding is revolving warehouse facilities and asset-backed securities issued. The table below
reconciles the borrowings associated with the warehouse trusts and corporate debt facility including the drawn balance, funding
limits and undrawn balances. The difference between the drawn balance and total borrowings disclosed on the balance sheet
reflects capitalised borrowing costs.
2024
2023
$’000
$’000
MME Horizon 2020 Warehouse Trust26
400,882
273,464
MME Autopay 2021 Trust26
348,647
298,703
SocietyOne Funding Trust No. 226
183,304
104,602
MME Horizon Warehouse Trust26
80,750
80,750
MME PL Trust 2022-127
–
89,990
SocietyOne PL 2021-1 Trust27
–
55,304
SocietyOne PL 2023-1 Trust27
70,399
145,050
SocietyOne Personal Loans Trust28
28,932
29,932
Corporate Debt Facility
52,572
50,261
Drawn balances
1,165,486
1,128,056
MME Horizon 2020 Warehouse Trust26
102,818
230,236
MME Autopay 2021 Trust26
401,353
130,697
SocietyOne Funding Trust No. 226
61,086
85,398
MME Horizon Warehouse Trust26
–
–
MME PL Trust 2022-127
–
–
SocietyOne PL 2021-1 Trust27
–
–
SocietyOne PL 2023-1 Trust27
–
–
SocietyOne Personal Loans Trust28
–
–
Corporate Debt Facility
–
–
Undrawn balances
565,257
446,331
MME Horizon 2020 Warehouse Trust26
503,700
503,700
MME Autopay 2021 Trust26
750,000
429,400
SocietyOne Funding Trust No. 226
244,390
190,000
MME Horizon Warehouse Trust26
80,750
80,750
MME PL Trust 2022-127
–
89,990
SocietyOne PL 2021-1 Trust27
–
55,304
SocietyOne PL 2023-1 Trust27
70,399
145,050
SocietyOne Personal Loans Trust28
28,932
29,932
Corporate Debt Facility
52,572
50,261
Funding limits
1,730,743
1,574,387
26 Warehouse trust facilities, excluding subordinated note investments and investments made by other controlled entities of the Group and including
senior commission notes, where applicable.
27 Term trust facilities.
28 Reflects funds contributed by external unitholders, invested directly and indirectly in MONEYME assets. The drawn balances and funding limits for 30
June 2023 have been updated to include SocietyOne Personal Loans Trust.
2024 Annual Report
81
Actual securitisation liability repayments occur when the trust reaches contractual amortisation periods based on assumed
repayment patterns in underlying receivables. The securitisation facilities provide for additional funding as shown in the table
above. Significant changes in funding during FY24 include:
• MME Autopay 2021 Trust: in FY24 the facility size of the trust decreased to $375.0 million and subsequently increased to
$750.0 million (inclusive of the subordinated note investments and exclusive of the senior commission note) in March 2024.
• SocietyOne Funding Trust 2: the total commitment limit increased from $210.0 million to $260.0 million (inclusive of
subordinated note investments and investments made by other controlled entities of the Group) in March 2024.
• Clean-up call executed in SocietyOne PL2021-1 Trust in April 2024 and MME PL 2022-1 Trust in June 2024 resulting in all
note balances in the respective trusts being repaid.
19.5 Fair value of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:
• in the principal market for the asset or liability; or
• in the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the consolidated entity. The fair value of an asset or
a liability is measured using the assumptions that market participants would use when pricing the asset or liability, if market
participants act in their economic best interest.
AASB 13 Fair Value Measurement requires disclosure of fair value measurements by level in the fair value measurement hierarchy
as follows:
Level 1 – the instrument has quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – a valuation technique is used using inputs other than quoted prices within level 1 that are observable for the financial
instrument, either directly (i.e., as prices), or indirectly (i.e., derived from prices).
Level 3 – a valuation technique is used using inputs that are not observable based on observable market data (unobservable
inputs).
As at 30 June 2024, the Group held $2.6 million (30 June 2023: $7.9 million) of Level 2 derivative financial instruments at fair
value.
The Group has $1.3 billion assets measured at amortised cost (30 June 2023: $1.2 billion) and $1.2 billion liabilities measured at
amortised cost at 30 June 2024 (30 June 2023: $1.1 billion).
Except for the fixed rate loans, Management consider that the carrying amounts of financial assets and liabilities measured at
amortised cost in the consolidated financial statements approximate their fair value.
Refer to Notes 3.1.8.1 and 3.1.8.2 for further detail as to the measurement of these financial instruments.
The following table presents the fair value of financial assets that are not measured at fair value (where fair value disclosures are
required):
30 June 2024
30 June 2023
Note
Carrying value
Fair value
Carrying value
Fair value
$’000
$’000
$’000
$’000
Fixed rate loan receivables
10
279,203
324,485
313,324
329,135
Total financial assets requiring disclosure
279,203
324,485
313,324
329,135
20. Related party transactions
20.1 Newcastle office fit-out
A related party was engaged to complete office fit outs in Newcastle in FY23. The transaction was made in accordance with
normal terms and conditions of the market with pricing assessed to be on an arm’s length basis. Total contracted spend was $nil
for FY24 (FY23: $2.4 million). This is deemed to be a related party transaction due to a common KMP relationship.
20.2 Australian Financial Services Licence (AFSL) responsible manager services
A related party was engaged to provide AFSL responsible manager services to SocietyOne Investment Management Pty Ltd in
both FY24 and FY23. The transactions were made in accordance with normal terms and conditions of the market with pricing
assessed to be on an arm’s length basis. Total spend was $0.04 million in FY24 (FY23: $0.01 million). The transactions are
deemed to be related party transactions due to a common KMP relationship.
2024 Annual Report
82
21. Parent entity information
The table below provides a summary view of the parent entity, MoneyMe Limited, for the 2024 and 2023 financial years.
2024
2023
$'000
$'000
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Gross revenue
7,371
8,769
Net revenue
7,371
8,769
Total operating expenses
(7,371)
(104,727)
Profit / (loss) before tax
–
(95,958)
Net profit / (loss) after tax
–
(95,958)
Total comprehensive income
–
(95,958)
Consolidated Statement of Financial Position
Total assets
112,223
153,211
Total liabilities
3,189
3,189
Net assets
109,034
150,022
Total equity
109,034
150,022
The accounting policies of the parent entity, are consistent with those of the Group, as disclosed in Note 2, noting that the
consolidation related policies are not applicable to this Note.
22. Deed of Cross Guarantee
Pursuant to the relief provided under ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, the entities listed
below are relieved from the Corporations Act 2001 (Cth) requirements for preparation, audit and lodgement of financial reports,
and Directors’ reports.
The Group’s Deed of Cross Guarantee covers all eligible entities in the Group. This arrangement results in each of the included
entities (collectively, the Closed Group) guaranteeing to creditors of each other member of the Closed Group payment in full
of any debt in the event of winding up of a member of the Closed Group under certain provisions of the Corporations Act 2001
(Cth).
The following entities became parties to the Deed of Cross Guarantee on 29 June 2022: MoneyMe Limited, MoneyMe Finance
Pty Limited, MoneyMe Financial Group Pty Ltd and SocietyOne Australia Pty Ltd. On 30 June 2023, MoneyMe Employment
Services Pty Ltd became a party to the Deed of Cross Guarantee pursuant to an assumption deed.
The Consolidated Statement of Profit or Loss and Other Comprehensive Income and Consolidated Statement of Financial Position of the
entities that are members of the Closed Group, after eliminating all transactions between members of the Closed Group, are as
follows:
20.3 Unconsolidated SocietyOne P2P Lending Trust
An entity controlled by the Group, SocietyOne Australia Pty Ltd, acts as trustee as well as servicer of the asset investments of
the unconsolidated SocietyOne P2P Lending Trust. The Group earns service income from investment management agreements
entered into with the investors and/or trust. The transactions are deemed to be a related party transactions due to a common
KMP relationship. In FY24, the Group received income of $0.3 million from SocietyOne P2P Lending Trust (FY23: $1.0 million).
Further in FY24, there is a receivable amount owing from the Trust to the Group of $0.3 million (FY23: $0.6 million).
2024 Annual Report
83
2024
2023
$'000
$'000
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Gross revenue
90,607
105,969
Net revenue
81,449
100,030
Total operating expenses
(62,898)
(79,533)
Profit / (loss) before tax
18,551
20,497
Net profit / (loss) after tax
28,889
20,497
Total comprehensive income
28,889
20,497
Consolidated Statement of Financial Position
Total assets
259,321
264,093
Total liabilities
60,339
55,735
Net assets
198,982
208,358
Total equity
198,982
208,358
2024
2023
$’000
$’000
- Group financial reporting
397
862
- Controlled entities financial reporting
34
66
Statutory assurance services required by legislation to be provided by the auditor
431
928
- APRA regulatory report assurance
12
27
- Audit of AFSL License
12
20
Other assurance and agreed-upon procedures under other legislation or
contractual arrangements
24
47
Debt sale services
–
50
Operation process reviews
20
110
Tax compliance services
–
230
Total
475
1,365
23. Remuneration of auditors
During the financial year, the following fees were paid or payable for services provided by Grant Thornton Pty Ltd (FY23:
Deloitte Touche Tohmatsu), the auditor of the Group and its network firm.
24. Subsequent events
On 18 July 2024, MONEYME executed a $178 million MME PL 2024-1 Trust term securitisation.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect, the
Group’s financial position as at 30 June 2024.
2024 Annual Report
84
Additional Information
2024 Annual Report
85
Additional information required pursuant to ASX Listing Rule 4.10
and not disclosed elsewhere in this report is set out below. The
information is current as at 31 July 2024.
Stock exchange listing
The Company’s shares are listed on the Australian Securities
Exchange under the code MME.
Class of equity securities
Total number on issue
Total number of holders
Fully paid ordinary shares1
800,078,476
2,618
Unquoted performance rights2
63,816,718
102
Note: all options and performance rights were issued or acquired under an employee incentive scheme.
1 The fully paid ordinary shares figure in the above table differs to the amount quoted in Note 17 of the Financial Report as it includes the 5 million treasury
shares held by the Group.
2 The unquoted performance rights figure in the above table differs to the amount quoted in Note 18.3 of the Financial Report as 45,689 performance
rights were exercised during the month of July 2024.
Voting rights
As set out in rule 6.10 of the Company’s Constitution, at a general meeting:
• on a show of hands, each holder of ordinary shares present at the meeting has one vote; and
• on a poll each holder of ordinary shares present has one vote for each fully paid share held.
No voting rights attach to the performance rights.
Distribution schedule – fully paid ordinary shares:
Range
Number of holders
Number of shares
% of shares
100,001 and over
373
770,154,998
96.26
10,001 to 100,000
703
25,778,086
3.22
5,001 to 10,000
257
2,001,663
0.25
1,001 to 5,000
652
1,824,693
0.23
1 to 1,000
633
319,036
0.04
Total
2,618
800,078,476
100.00
Additional
Information
Information relating to equity securities on issue
Number of holders and securities on issue by class
2024 Annual Report
86
Unmarketable parcels
1,354 holders of fully paid ordinary shares held less than a marketable parcel of shares as at 30 July 2024, based on the closing
market price of shares on that date. The total number of shares held by these holders was 2,548,264.
Top 20 shareholders
The 20 largest registered holders of fully paid ordinary shares held are set out below:
Escrowed securities
There are no restricted securities or securities subject to voluntary escrow.
Rank
Registered holder
Number of shares
% of shares
1
Resimac Limited
83,400,000
10.42
2
Thorn Group Limited
64,408,413
8.05
3
J P Morgan Nominees Australia Pty Limited
61,288,714
7.66
4
Howes Advisory Pty Ltd
51,294,716
6.41
5
Emery Pty Ltd
50,000,000
6.25
6
Citicorp Nominees Pty Limited
41,802,787
5.22
7
Emery Pty Ltd
39,671,897
4.96
8
HSBC Custody Nominees (Australia) Limited – GSI EDA
33,721,988
4.21
9
Down The Line Consulting Pty Ltd
27,028,274
3.38
10
Seymour Global Capital Pty Ltd
27,000,000
3.37
11
Maxim Wealth Pty Ltd
24,027,191
3.00
12
UBS Nominees Pty Ltd
23,849,427
2.98
13
Warbont Nominees Pty Ltd
14,747,951
1.84
14
News Pty Ltd
7,917,589
0.99
15
QC Communications Pty Ltd
7,095,000
0.90
16
BNP Paribas Nominees Pty Ltd
6,637,652
0.83
17
Reinventure Group Pty Ltd
6,621,645
0.83
18
Tom Cregan
6,250,000
0.79
19
Emery Pty Ltd & Scott Emery Family
6,218,905
0.78
20
R Cassen Pty Ltd
5,596,260
0.70
Total top 20 holders
588,578,409
73.57
Total balance of holders
211,500,067
26.43
Total shares
800,078,476
100.00
Distribution schedule – performance rights:
Range
Number of holders
Number of rights
% of rights
100,001 and over
83
62,976,107
98.69
10,001 to 100,000
15
812,923
1.27
5,001 to 10,000
4
27,688
0.04
1,001 to 5,000
-
-
-
1 to 1,000
-
-
-
Total
102
63,816,718
100.00
2024 Annual Report
87
Name of substantial holder
Number of shares
Voting power
Somers Limited and Associates3
183,532,362
22.94%
Emery Pty Ltd and Scott Emery
97,308,802
13.05%
Regal Funds Management Pty Ltd
85,513,099
10.69%
Thorn Group Limited and Associates4
64,408,413
8.64%
Howes Advisory Pty Ltd and Clayton Howes
51,294,717
6.88%
Bannigan Nominees Pty Ltd5
19,973,010
N/A
Substantial holders
The names of substantial holders in MoneyMe Limited and the number of equity securities in which each substantial holder and
their associates have a relevant interest, as disclosed in substantial holding notices given to MoneyMe Limited, are set out below:
Corporate governance
The Group’s Corporate Governance Statement for the financial year ended 30 June 2024 can be found at https://investors.
moneyme.com.au/investor-centre/.
Other matters
There is no current on-market buy back. No securities were purchased on market during the year ending 30 June 2024 under
or for the purposes of an employee incentive scheme or to satisfy the entitlements of the holders of options or other rights to
acquire securities granted under an employee incentive scheme. There are no issues of securities approved for the purposes of
item 7 of section 611 of the Corporations Act.
3 The Associates referred to in the Somers Limited substantial holder notification, all of whom contribute to the voting power in the Company held by
Somers Limited as noted above, are: Resimac Limited, Resimac Group Limited, Thorn Group Limited, Ingot Capital Investments Pty Ltd, Capel Court Pty
Ltd, UIL Limited, ICM Limited, ICM Investment Management Limited, General Provincial Life Pension Fund Limited, Union Mutual Pension Fund Limited,
Somers Isles Private Trust Company Limited and Duncan Saville.
4 These shares are also included in the Somers Limited notification and form part of Somers Limited’s voting power. None of the other Associates referred
to in the Somers Limited notification has lodged a substantial holding notification in its own right.
5 This holding is no longer a substantial holding but no notice of ceasing to be a substantial holder has been received.
2024 Annual Report
88
COMPANY’S REGISTERED OFFICE
MoneyMe Limited
Level 3
131 Macquarie Street
Sydney, New South Wales 2000
SHARE REGISTRY
Link Group
Level 12
680 George Street
Sydney, New South Wales 2000
DIRECTORS
Jamie McPhee (Independent Non-Executive Chair)
Clayton Howes (Managing Director and Chief Executive Officer)
Scott Emery (Non-Executive Director)
Susan Hansen (Non-Executive Director)
Rachel Gatehouse (Independent Non-Executive Director)
David Taylor (Independent Non-Executive Director)
AUDITOR
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney, New South Wales 2000
COMPANY SECRETARY
Jonathan Swain
WEBSITE
www.moneyme.com.au
INVESTOR RELATIONS
investors@moneyme.com.au
ASX: MME
ACN: 636 747 414
Corporate Directory
2024 Annual Report
89
2024 Annual Report
90
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