- Humm Group (HUM) continues its pitch to shareholders to support the sale of Humm Consumer Finance (HCF) to Latitude Group (LFS)
- The company advises that HCF’s performance is under significant pressure, with year-to-date cash net profit after tax (CNPAT) down 61 per cent from the previous corresponding period to $17.3 million
- Since February, the company has released a string of announcements trying to persuade shareholders to vote in favour of the sale in the upcoming General Meeting to be held in a week
- Whilst majority of the Board support the move, former Chairman Andrew Abercrombie has stated his opposition, with the belief it undervalues the company
- Shares are trading 3.7 per cent lower today at 65 cents at 11:30am AEST
Humm Group (HUM) has continued its pitch to shareholders to support the sale of Humm Consumer Finance (HCF) to Latitude Group (LFS).
The company advises that HCF’s performance is under significant pressure, with year-to-date cash net profit after tax (CNPAT) down 61 per cent from the previous corresponding period to $17.3 million.
Meanwhile, net receivables decreased by 3.6 per cent to $1790 million.
Since February, the company has released a string of announcements trying to persuade shareholders to vote in favour of the sale in the upcoming General Meeting to be held in a week.
Whilst majority of the Board support the move, former Chairman Andrew Abercrombie has stated his opposition, with the belief it undervalues the company.
Under the terms of the sale, consideration of $225 million will be received, with $35 million in cash and 150 million in Latitude shares.
The Board has reportedly been trying to source the potential for a better offer, but has received no alternatives.
Chair Christine Christian said intense competition has caused the branch of business to suffer.
“The trading environment is very tough for HCF, with intense competition, rising interest rates, and weakening consumer sentiment,” she said.
“HCF has experienced a reduction in net receivables, net yield compression and higher expenses.”
Shares were trading 3.7 per cent lower today at 65 cents at 11:30am AEST.