HUM - Humm Group

Dona Ferentes said:

and fallen out of bed; certainly no buzz about this one .... HUM dropped nearly 40% to 43c on Friday. Back above 50c today, but only just.



and Latitude LFS not doing too well, either, falling because their growth pathway could be crimped

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Oh my. 4 directors resigned today after sending out a stunning letter to shareholders - specifically stating they:

"cannot remain on the Board of Directors with Andrew Abercrombie"

"As you will be aware, Andrew Abercrombie undertook a strident campaign against the proposed sale, strongly encouraging shareholders to vote against the transaction. Much of the commentary he published was emotion-driven, inflammatory, and provided little clarity on what precise future strategy he envisages for HCF, or on what basis he believed Latitude were going to pay more for HCF. There is still essentially no clarity on the future strategy he envisages for HCF. Some of the information he published was false and misleading, which we instructed him to take down from his website. He persisted in telling shareholders to vote against the transaction."

Given this, the Majority Directors asked Latitude to improve the terms of its offer, which it refused to do. Public pressure from Humm shareholders threatening to side with Andrew Abercrombie and vote down the transaction had no impact on Latitude’s position, which was unsurprising given the deteriorating economic environment, crashing sector stock prices and lack of any alternative bidding interest. The Majority Directors believe Andrew Abercrombie overplayed his hand quite fundamentally in a transaction that could have been very beneficial for shareholders"

On the statements above and given Mr. Abercrombie is (or was?) a liberal party treasurer and sometimes in the media referred to as a liberal party power broker I suspect things might start to get a little interesting for HUM, himself, and the board. Not only are there going to be confused angry shareholders, but there will also be confused angry shareholders who are labor supporters.. The last 3 years have been a debacle for HUM/FXL and really most of the listing history of this company has been a dumpster fire as far as shareholder returns. Andrew has been there from the beginning.

On a related note situations like this reinforce my "sell half now and the rest in a week or two" philosophy when a takeover is announced. So glad to have dumped this junk. Was a poor investment.

Dona Ferentes said:

and fallen out of bed; certainly no buzz about this one .... HUM dropped nearly 40% to 43c on Friday. Back above 50c today, but only just.

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2 years later ... history repeating?



down 20 per cent after results. Mustn't have delivered. ... plenty of ways to restate blame. Rising inflation / rates ?

humm® group announces half year 2024 results
• hummgroup total receivables of $4.65b, up 23% on pcp
o Commercial receivables of $2.70b, up 39% on pcp
o Consumer Finance receivables of $1.95b, up 6% on pcp
• 1H24 Normalised Cash Profit (after tax) “Normalised Cash Profit” of $28.1m, was only down 27% on pcp, despite material increase in interest rates, and the rebuilding our PosPP offering. This profit was underpinned by another strong performance from Commercial
• Normalised Cash Profit was impacted by an interest expense increase of $61.7m from increases in receivables, base rates (offset by hedge benefits), credit spreads and improved efficiency in our funding structures
• 1H24 Statutory Net Loss (after tax) of $6.0m (1H23 Statutory Net Profit (after tax) of $7.5m)
• Group Net Credit Loss/Average Net Receivables was 1.68%, a 27bps improvement on pcp
• Management executed $7.5m in further cost savings during 1H24 bringing the total savings to$26.1m since commencement of the program in 1H23, which offset some of the necessary reinvestment into customer facing roles and the overall inflationary environment
• Strong balance sheet with $4.65b in receivables, $159.4m in unrestricted cash, and $1.14b of warehouse headroom
• Fully franked interim dividend proposed of 0.75 cent per share
• A total of 20.9m shares (approximately 4.0% of shares on issue) purchased through buy back and share plan as at the date of this report.

maybe there's money to be made in BNPL if the model is well tweaked.

up 25 per cent

.
SOUND FINANCIAL PERFORMANCE BASED ON SECOND HALF RECOVERY

Strong balance sheet fundamentals
• hummgroup total receivables of $5.0b, up 18%
-- Commercial receivables of $3.0b, up 26%
-- Consumer Finance receivables of $2.0b, up 11%.
• Strong balance sheet with $125.1m in unrestricted cash and $0.7b of warehouse headroom.
• Fully franked final diviend of 1.25 cents per share bringing dividends for the year to 2.0 cents per share on a fully franked basis, representing a return to shareholders of 6.02%.

Improving returns from core businesses
• Statutory net profit (after tax) of $7.1m was up 145%. The second half Statutory net profit (after tax) of
$13.1m represented a turnaround of $19.1m from the first half loss of ($6.0m).
• Normalised cash profit (after tax)1 of $60.6m was down 19% with positive second half performance from core businesses.
• Normalised cash profit (after tax)1 of $32.5m in 2H24 was up 16% on 1H24 mainly driven by a 4% increase in Net operating income and a 14% decrease in costs from the first half.
• Net Interest Margin stabilised across FY24 at 5.5% with an exit NIM of 5.5% improving by 40bps from June 2023.
• Group Net Credit Loss/Average Net Receivables was maintained at 1.8%.
• Management executed $13.2m in cost savings during FY24.

Executing on the customer
• Volume from continuing products of $3.8b, up 6%.
• Gross yield of 11.6%, up 50bps.
• Launch of humm Hybrid Loan Product in 1H25.

Gapped up after earnings report, a company in the Finance Sector, which is trending strongly.
Took a starter position.

Strong volume last couple of days that may be related to ASX re balance.
Bought the main position (after the starter last week) this morning on strength.

I'm getting a banner ad on ASF from humm .... 110 days interest free on their credit cards !!!