Foreign exchange company OFX suffered a heavy COVID-related fall in its consumer business last year but its corporate business held up well.
Yesterday the company reported that in the 12 months to March, net operating income fell 5.8 per cent to A$117.9 million.
Net profit fell 37.1 per cent to $12.8 million, while EBITDA fell 20.3 per cent to $29.4 million.
Fee and trading income in the consumer segments fell 15.6 per cent and active client numbers fell 11.6 per cent.
Sources of revenue in the consumer division include holidays and travel, migration, property investment, loan repayments and expat salary transfers. All were hit by COVID.
A few sources of consumer revenue continued to produce good results. They were family support, investments and purchases.
Revenue was up 11 per cent in the corporate segment of the business.
The second half picked up with overall net operating income up 18.7 per cent on the first half.
The company has a strong balance sheet, with net cash of $60.6 million.
Positive cash flow allowed it to invest more than $10 million in systems. During the year it launched a global currency account for corporate customers.
Investment in transaction monitoring and fraud tools resulted in a 40 per cent reduction in bad debts from $3.3 million in 2019/20 to $1.9 million in the year to March.
And it made a strategic investment in a European treasury management software company, TreasurUp. It hopes this investment will allow it to provide automated hedging and risk management services for small and medium business clients.