DirectMoney Updates Shareholders on Q2 Performance

Australian marketplace lending platform DirectMoney (ASX:DM1) has posted its Q2 results for the period ending December 21st, 2015.  DirectMoney listed its shares on the ASX just last year in mid-July. The IPO priced out at $0.20/share. The company was launched in 2006 but created a market for loans in 2014.  Investors may purchase shares in a fund designed to generate income each month at a rate of return higher than the rate of return paid by the banks on basic savings and deposit accounts.

DirectMoneyPeter Beaumont, CEO of DirectMoney, stated his company was focused on applying technology to capture a growing share of the estimated $100 billion per year in unsecured consumer credit.

According to DirectMoney $3.18 million in loan contracts settled in Q2, a 127% increase over the previous quarter. In December alone, $1.27 million in loans were settled – the most ever for the platform in any given month.

At the end of 2015, DirectMoney held $8.49 million in loans. The total aggregate value of all loans written since the platform started offering loans in October of 2014 is stated at $10.49 million. Total cash on hand at the end of Q2 stood at $3.314 million, a decline from the previous quarter when it stood at $6.747 million

DirectMoney originates a significant portion of its loans via broker channels.  The lender says it has access to over 4500 brokers via its agreements with aggregators. It has also recently signed agreements with the Australian Financial Gropu and United Financial, adding to the list of established relationships with Finsure, Loan Market, Smartline and National Finance Choice.

Stephen Porges, Executive Chairman of DirectMoney, was positive on the Q2 results;

“Second quarter performance was pleasing with loan settlement growth meeting internal estimates.  The company is on track to acheiving its short term target for loan volumes. We will continue to invest in our proprietary technology platform, our people, channel partners and brand to accelerate loan volumes in an efficient and creditworthy manner.”

 

 

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