• Normalised NPAT of $18.5 million, up 26.9% on pcp
• 7.1% increase in loan book to $824.7 million
• 20% increase in interim dividend to 6.0 cents per share

Solvar Limited (ASX: 'SVR'), the leading provider of automotive finance, has reported its financial performance for the half-year ended 31 December 2024 (H1 FY25). The Group's continuing operations in Australia delivered a normalised Net Profit after Tax (NPAT) of $15.9 million, driven by a 4.6% increase in interest income to $93.1 million and a 7.1% increase in the loan book to $824.7 million compared to the prior corresponding period (pcp). The Group's normalised NPAT, including its New Zealand operations, was $18.5 million, a 26.9% increase on pcp. This was primarily driven by interest cost savings from the repayment of external debt and lower bad debts in the Go Car Finance business. Solvar will pay an interim FY25 dividend of 6.0 cents per share fully franked, representing a 20% increase on pcp. The Group expects to maintain a similar payout ratio in H2 FY25. Solvar is nearing the end of a significant transition period, with substantial resources invested in reconfiguring lending practices, reviewing governance, and establishing dedicated compliance teams. The Group is also investing in new product development and establishing a dedicated commercial lending team, positioning it well for growth in FY26. Solvar reiterates its FY25 guidance of normalised NPAT of $34.0 million.

Solvar reiterates FY25 guidance of normalised NPAT of $34.0 million.

The Australian loan book is expected to continue disciplined growth into H2 FY25. Solvar is well positioned for continued growth in FY26.