30 June 2018 Annual Financial Report
The principal activities of the Company were the provision of a range of retail banking products and services to existing and new customers. Goldfields Money Limited is a banking institution regulated by the Australian Prudential Regulation Authority ("APRA"). The Company has two branches in regional Western Australia, and has sought to diversify its credit and funding risk through leveraging third party distribution networks.
OPERATING AND FINANCIAL REVIEW
The Company has recorded a statutory loss after income tax for the year ended 30 June 2018 of $406,699, an improvement of 59.2% on the prior year loss of $996,456. Underlying profit after tax, after accounting for the effects of costs of $938,862 incurred in responding to the Firstmac proposal and the Finsure transaction, was a $1,161,846 improvement on the prior year underlying loss of $629,680, which was net of the costs associated with the early termination of the previous core banking system.
Building the business for growth
FY18 saw significant efforts focused on setting the Company for future growth capabilities with the development and implementation of a new finance system and core banking system (CBS). The Temenos T24 Software as a Service (SaaS) system was successfully launched in April 2018 and will enhance the Company's ability to originate loans and deposits directly and through third party intermediaries into the future. This was a major milestone for a small team and underpins the Company's strategy going forward. Ongoing development of the system and process will continue into FY19 to ensure the full benefits of the T24 system are realised.
The launch of the CBS is the result of significant investment that the Company has made in its people, products and processes over the last two years.
In conjunction with the new CBS, the Company launched its newly branded website and mobile device app enhancing the accessibility and user experience for our customers.
In October 2017, the Company received an unsolicited take-over from an entity associated with its then largest shareholder Firstmac Limited (Firstmac) which subsequently lapsed on 1 December 2017. On 23 November 2017, the Company and Finsure Holdings Pty Ltd (Finsure) announced the signing of a Process Agreement, which outlined the key commercial terms of a proposal under which the Company will merge with Finsure by acquiring 100% of the diluted shares in Finsure via the issue of Goldfields Money shares.
On 15 January 2018, the Company announced it had satisfactorily completed the due diligence and agreed terms with Finsure to implement the merger, subject to appropriate approvals being obtained. The necessary regulatory approvals have now been obtained, and shareholders will have the opportunity to vote for the transaction at a meeting of shareholders to be held on 7 September 2018. The transaction, conditional upon the Company raising at least a further $15.3 million of capital, will result in the Company owning a fast growing national mortgage aggregation and wholesale mortgage business, significantly increasing the Company's scale, access to distribution capabilities and growth prospects.
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About Goldfields Money Ltd
Who is Goldfields Money Limited (ASX:GMY)? We're the little bank that could, the plucky regional credit union who grew into a national, straight-talking, digitally savvy alternative to traditional banking in Australia. We are the new approach to banking in Australia, we're honest, with transparent bank practices and a straightforward approach to you and your money. It's all yours, honestly.
We've had some awesome projects come to fruition this year which make managing your money with us simple. We've replaced our core banking system with the latest, state-of-the-art advancements in banking technology. Think of core banking systems as the beating heart of every banking institution. Some core banking systems currently operating out there are now over 30 years old and layered with patches and workarounds as new technology has evolved, such as; online banking, smartphones, and data security. The replacement of our core banking system makes us better than we were before. Better, stronger, faster.
We are listed on the ASX (ASX:GMY) and regulated by APRA. See the official looking logo below? It means depositors enjoy the same protection as the big banks with deposits guaranteed by the Australian Government for up to $250,000 per customer (including business accounts). You can read more about us at www.goldfieldsmoney.com.au
From everyday savings and investment accounts, business accounts, personal loans or home loans Goldfields Money offers uncomplicated banking products to suit your situation. We get you.
Goldfields Money Ltd