Product development is back on the agenda at a more growth-focused Zip Co, following the company’s success in turning its fortunes around over the past year. In November, the company launched a product called Zip Plus that looks a lot like a credit card, allowing customers to make larger purchases and pay them off over a longer period. Zip chief executive Cynthia Scott said the company would roll out more new products this year, with a focus on higher margins. This time last year Zip released a financial report for the six months to December 2022 that included a qualification from the company’s auditor Deloitte, which pointed to a loss of A$241.2 million, cash outflow from operating activities of $226.2 million and cash outflow of $22.9 million from financing activities. Deloitte said: “These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern.” The company was in full-scale retreat, winding up business in the UK, Singapore and Mexico, and looking at selling or shutting down businesses in the Czech Republic, Poland, Saudi Arabia, United Arab Emirates and South Africa. It also trimmed its product set. Twelve months on and the business has been stabilised and is making money. The financial report for the six months to December 2023 shows a 9.6 per cent increase in transaction value to $5 billion, compared with the previous corresponding period. This translated into revenue of $430 million – up 28.9 per cent. Profit for the half was $73 million.  After adjusting for a number of non-cash and one-off items, including a large fair value gain from a convertible note restructure, cash EBTDA was $30.8 million, compared with a cash EBTDA loss of $33.2 million in the previous corresponding period. Cash flow from operating activities was $113.7 million. Cash and cash equivalents on the balance sheet increased from $151.9 million to $160.7 million, and “available cash” increased from $57.3 million to $81.3 million. There is still some consolidation going on. Customer numbers were down 2.5 per cent to 6.3 million, as a result of tighter risk settings. In January, Zip entered into an agreement to sell its Australian business loan portfolio to Prospa Group. Prospa will pay $15.6 million for $18.4 million of performing loans to 370 small businesses. Net bad debt was steady at 1.9 per cent of total transaction value. The company paid interest of $112.8 million, compared with $68.3 million in the previous corresponding period. Scott said there has been significant refinancing activity, which should reduce costs in future. In December, it completed a new four-year $150 million corporate debt facility with funds managed by Area Management. It completed a $300 million note issue in its master trust and refinanced one of its receivables warehouses. The company said it has funds for growth in Australia and the United States. And last July, it converted $330 million of zero coupon convertible notes into ordinary shares plus cash, reducing debt by around $192 million in the process.