Butn (ASX: BTN) has delivered strong results for the quarter ending 30 June following major milestones for the company.
During the quarter, Butn achieved a significant milestone recording more than $ 1 billion of cumulative originations since its inception in 2015. This growth has been achieved whilst maintaining industry-low non-recoverable write-offs of approximately 0.1% of originations.
Commenting on Q4 FY22, Butn’s Co-founder and Co-CEO, Rael Ross said:
“This quarter Butn reached a major business milestone, exceeding $1 billion of cumulative originations. This represents thousands of businesses who have accessed funding when they need it, in a manner that’s easy, simple and accessible. This has never been more evident, with the current quarter reflecting a record $85.4 million in originations, up 46% on the pcp, with each month in the quarter a consecutive record month. Importantly, this has been achieved with continued industry low write-offs, appropriately balancing growth and risk.
“Pleasingly, the Butn platform has grown from a standing start, to now account for approximately 20% of our total monthly originations, without requiring additional operational staff. This demonstrates the significant benefits in our embedded funding technology and unique approach with growth continuing to accelerate as we deepen our existing strategic partnerships”
During Q4 FY22, net revenue was $1.7 million, up 57% from the previous corresponding period as well as originations grew to an impressive $85.4 million, up 46% from the previous corresponding period. This included consecutive record monthly originations across April, May, and June 2022, underlying growth momentum in the business.
Momentum across the Butn platform continues to increase with approximately 20% of total monthly originations attributed to strong month-on-month growth. June platform originations exceeded $6 million in addition to the average platform transaction value at approximately $9000, with new registrations and the number of transactions all scaling without additional operational staff.
Butn’s financial position remains strong with an additional $12.5m of debt secured from noteholders, reflecting strong investor desire for Butn’s quality client book. Additionally, cash on hand was $15.8 million, providing continued financial flexibility to pursue growth opportunities.
