By Colin Kruger
Small business lender Prospa has been forced to correct an ASX statement concerning the balance of its third party funding following a second query from the ASX in two weeks.
In a response to the ASX query dated April 20, Prospa on Thursday confirmed its third party facilities totalled $452.7 million as of December 31 but acknowledged a statement to the ASX last month “incorrectly stated” it was $485 million due to a post balance date item being included.
“Included in the report was a post balance date event … describing new funding of $32.5 million effective February 17, 2020. Hence the relevant figure with the effect from 17 February 2020 was $485 million.”
In happier times: Beau Bertoli and Greg Mosha at Prospa's ASX listing last year. Credit: Peter Braig
It is another blow to Prospa’s credibility which announced in November that its executives faced increased boardroom oversight and the loss of bonuses after revealing it would miss its June earnings prospectus forecast by 60 per cent.
The company announced in January that its chief financial officer Edoardo Bigazzi would step down and leave the small business lender in March.
Former Westpac executive Peter Loosmore took on the CFO role in January on an interim basis while the company searches for a permanent appointee.
Shares were unchanged at 75¢ Thursday afternoon. Investors bought shares at $3.78 in the ASX float in June last year.
Earlier this month Prospa was forced to respond to a query from the ASX explaining why its shares jumped from 52¢ to 82¢ on the Thursday before Easter ahead of its announcement on Tuesday, April 14 that it had received access to the government’s small business lending scheme.
Prospa said it was notified by Treasury on that Thursday evening and the deal was not finalised until that weekend. No further action has been taken in respect of the price jump.
The lending scheme provided a significant boost for Prospa which has faced market concerns over a potential deterioration in asset quality while debt funding costs increase. Macquarie noted that Prospa's access to the government scheme "could materially reduce the risk of associated with Prospa's funding".