How Did Harmoney Bounce Back to $5.5M Profit in FY25?
Harmoney Corp Limited has turned around its fortunes with a $5.5 million profit for FY25, reversing last year's loss, while revenue climbed nearly 8%. Despite the positive results, the company has not declared any dividends.
- Revenue increased 7.9% to $132.2 million
- Net profit of $5.5 million after a prior year loss of $13.2 million
- No dividends declared or paid for FY25
- Net tangible assets per share declined to $0.10 from $0.21
- Financial statements audited by BDO
A Return to Profitability
Harmoney Corp Limited has reported a significant financial turnaround for the year ended 30 June 2025, posting a net profit of $5.5 million compared to a loss of $13.2 million in the previous year. This marks a notable recovery for the consumer finance company, which saw its revenue increase by 7.9% to $132.2 million.
Revenue Growth Amidst Market Challenges
The revenue growth suggests that Harmoney has managed to expand its core lending activities or improve operational efficiencies despite a challenging economic environment. While the company has not provided detailed commentary on the drivers behind this improvement in the announcement, the full FY25 annual report is expected to shed light on the strategic initiatives and market conditions that contributed to this positive outcome.
Dividend Policy Remains Conservative
Despite returning to profitability, Harmoney has chosen not to declare or pay any dividends for the year. This cautious approach may reflect a desire to preserve capital for growth opportunities or to strengthen the balance sheet after a period of losses. Investors will be watching closely for any future updates on dividend policy as the company stabilizes its financial position.
Balance Sheet and Audit Assurance
Net tangible assets per share fell to $0.10 from $0.21, indicating some erosion in tangible book value despite the profit. The FY25 financial statements have been audited by BDO, providing an independent verification of the company’s reported results and reinforcing transparency for shareholders and the market.
Looking Ahead
While the profit recovery is encouraging, the lack of dividend payments and the decline in net tangible assets suggest Harmoney is still navigating through a period of rebuilding. The market will be keen to see how the company leverages this momentum in the coming year and whether it can sustain growth and profitability in a competitive consumer finance sector.
Bottom Line?
Harmoney’s profit rebound is a promising sign, but cautious capital management signals a company still in transition.
Questions in the middle?
- What specific factors drove the turnaround from loss to profit in FY25?
- When might Harmoney consider resuming dividend payments?
- How will the company address the decline in net tangible assets per share?
