The share price of finance smallcap Credit Intelligence (ASX:CI1) has fallen further into the second week of 2022 as the company reported a fresh update on half year FY23 profits on Tuesday.
The damage? A 70% decline in unaudited profits Year on Year (YoY) from this time last year.
That loss estimate is a more severe re-publication of an earlier warning published last week.
Credit Intelligence is a small outfit to begin with. At the halfway mark of FY22, it had $1.6m in profit.
This year, it will only have $480,000 (or $0.48m).
Last week, the company informed shareholders that half year FY23 profits were likely to be down “not less than 50%”.
At the time, it did not give an estimate on what the figure would be.
Credit Intelligence blamed the following three factors for the poor performance:
Increase to employee benefits
Increase in cost of developing BNPL services
Decrease in revenue from Singapore credit finance arm
The company expects to finalise its HY23 results by the end of next month.
Management also advised shareholders to remain cognizant that, so far, projections remain unaudited.
At this current time, a look at Credit Intelligence using Market Index reveals the following:
One year returns down -36%
Year to date performance down -23%
Market cap: $13.7m
Share price: 16.5c
The company has not released a quarterly since the FY2022 annual report.
At the time, it held $2.8m in cash.
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