Full Year 2026 QuickFee Ltd Earnings Call Transcript
Key Points
- EBTDA increased 58% to $3.8 million, meeting guidance, with both Australian and US businesses now profitable.
- Successful sale of two US products (Connect and payments) to Aiwyn, allowing a strategic focus on core lending and a maiden dividend of $0.05 per share.
- Strong growth in the Australian legal market, with the disbursement funding loan book up 51% and the accounting/legal mix now at 60/40.
- Net interest margin (NIM) improved to 15.3%, reflecting efficient cost management and a high-margin business model.
- Increased credit facility with Viola Credit from $45 million to $60 million, providing additional headroom for loan book growth.
- Expectation of a special dividend of up to $0.01 per share from escrow funds, plus a final dividend of $0.05 per share, offering a potential 13% yield.
- FY27 EBTDA guidance of $4.5-$5.5 million, indicating continued profitability and growth.
- Revenue declined 27% to $18.4 million due to the sale of US products, though like-for-like revenue was only down 1%.
- The US business remains smaller than Australia, with growth dependent on the success of the Aiwyn partnership, which is not yet fully integrated.
- The recovery of a US bad debt is still ongoing, with legal processes moving slowly and no guarantee of full recovery.
- The FY27 EBTDA guidance range is wide ($4.5-$5.5 million), reflecting uncertainty in lending growth and timing, particularly in the US.
- Cash balance decreased by $5.4 million to $8.3 million, partly due to the sale of the US payments business, which held significant cash.
- The company is reliant on a small team (17 staff) and third-party systems, which may limit scalability or operational flexibility.
- Potential for future dividends is tied to the release of escrow funds and ongoing profitability, which may not be sustained if growth targets are missed.
Good morning, everyone, and welcome to the QuickFee FY26 Results Webinar. On our call today, we have Bruce Coombes, Founder and CEO; and also Simon Yeandle, CFO. The presentation today will run for about 20 minutes, and then we'll open up for Q&A at the end. If you've got any questions, please feel free to type them into the Q&A tab. And now I would like to hand over to Bruce. Over to you, Bruce.
Fantastic. Thank you, Katie, and thank you, everybody, for one, being a shareholder, two, taking the time to listen to us today. We know it's a very busy time of the year with results presentations, et cetera. Thank you for making the time. So in a nutshell, where is QuickFee today? QuickFee is a high-margin business-to-business lender serving the clients of accounting and law firms and accounting and law firms themselves. There's a bit more detail on the next slide, which for those who are new to the story, this is what we do internationally. We do this in Australia and the United
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