Credit Intelligence’s Write-Off and Revenue Drop Keep Losses in Focus
Credit Intelligence Limited has issued a profit warning revealing a reduced loss of approximately A$4.5 million for FY25, down from A$12.5 million the previous year, driven by strategic divestments and a revenue decline.
- FY25 preliminary loss estimated at A$4.5 million, improved from A$12.5 million prior year
- Revenue declined by A$2.7 million during the financial year
- A$3.6 million write-off related to disposed subsidiary Chapter Two Holdings
- Strategic divestment of underperforming assets contributed to reduced losses
- Final audited results expected by end of August 2025
Credit Intelligence Reports Narrowed Losses for FY25
Credit Intelligence Limited (ASX – CI1) has released a profit warning for the financial year ended 30 June 2025, revealing a preliminary loss of approximately A$4.5 million. This marks a significant improvement compared to the A$12.5 million loss reported in the previous corresponding period. The company attributes this reduction primarily to strategic divestments and operational adjustments during the year.
Revenue Decline and Write-Off Impact Results
The Group experienced a revenue decline of A$2.7 million over the course of FY25, reflecting challenges in its core credit services operations. Additionally, a notable A$3.6 million write-off was recorded relating to accounts receivable from Chapter Two Holdings Pty Ltd, a partly owned subsidiary that was disposed of in January 2025. This write-off has had a material impact on the overall loss figure but is part of the company’s broader strategy to streamline its portfolio.
Strategic Divestments Drive Improved Financial Position
The company’s decision to divest underperforming entities appears to be paying off, as evidenced by the reduced loss. These moves suggest a focus on consolidating operations and improving financial health. While the preliminary results are unaudited and subject to change, the Board’s outlook indicates cautious optimism about stabilizing the business moving forward.
Looking Ahead to Final Results
Credit Intelligence has indicated that the final audited results for FY25 will be released by the end of August 2025. Investors and analysts will be watching closely for further details on revenue trends, cost management, and the impact of recent divestments. The company’s ability to return to profitability will likely depend on how effectively it can navigate ongoing market pressures and execute its strategic plans.
Bottom Line?
Credit Intelligence’s improved loss signals progress, but final audited results will be key to confirming its turnaround.
Questions in the middle?
- How will the disposal of Chapter Two Holdings affect future revenue streams?
- What operational changes are planned to reverse the revenue decline?
- Could further divestments or restructuring be on the horizon?
