FNX Annual Report 2022

Finexia Financial Group Limited (ASX:FNX) provides this financial report of the consolidated entity (the “Group”) consisting of Finexia Financial Group Limited and its controlled entities for the year ending 30 June 2022.

The Board of Finexia Financial Group is pleased to report the Group’s financial performance for the year FY22 continued to be strong, building on the previous year (FY21) and resulting in a net profit after tax of A$3.29M (2021: A$1.26M), maintaining the Group’s upwards earnings trajectory.

The key performance highlights:

• Net Profit Before Tax (NPBT) of A$3.84M for the 12-months to 30 June 2022, a 252% increase on the previous year (2021 - A$1.09M)
• Gross Revenue for the year A$10.51M growing by 78% from the previous year (2021 - A$5.91M)
• Net Assets expanded to A$8.84M a 71% increase from the previous year (2021 - A$5.16M)

The result is a product of the strategic transformation program the Group committed to in 2021, a roadmap towards earnings sustainability through the Group’s business verticals of Asset & Funds Management, Private Credit and Equity Markets. A sharpened focus on these core activities has been designed to provide greater earnings certainty and visibility with the resultant being growth in the Group’s recurring revenue line.

Pleasingly, the Group achieved a strategic and operational milestone during the year, with the launch of its flagship wholesale managed fund, Finexia Direct Accommodation Income Fund. The Fund was successfully launched in September 2021 with Finexia anchoring the Fund alongside its investors. To date, the Fund has performed to expectations, and to this point, Finexia remains committed to its investment in the domestic tourism and leisure markets.

During the period and for the first time, the Group published to the market, profit and revenue forecasts which we are pleased to report were achieved in the period. It is the Group’s intention to continue keeping the market apprised of its ongoing performance through profit guidance, consistent with a commitment to greater ongoing engagement with our investors and the broader investment community.

Despite significant headwinds facing global capital markets, the Board remain confident Finexia can continue its current earnings growth profile in 2023. A more detailed outlook will be provided to the market in the September 2022 quarter, which will include commentary on the three key thematics of the Group’s Asset Management division, namely, Domestic Holiday and Leisure, Childcare and Infrastructure. In addition, the Board intends to revise Finexia’s dividend policy, with aim of establishing a distribution program reflective of the Group’s cash earnings going forward.

We would like to acknowledge the contribution of our people for their shared vision, hard work and commitment in making this result possible. Furthermore, Finexia would like to extend the gratitude to our clients and investors for their continuing support and loyalty.

To read the Finexia Annual Report 2022 click here.

Yours Sincerely,

Neil Sheather

Executive Chairman and Director