• Normalised NPAT up 17.4% to $34.1 million
• Statutory NPAT up 84.4% to $31.4 million
• Final dividend of 8.0 cents, full year of 14.0 cents, up 40%
• $35 million on-market share buyback program, $23.9 million utilized

Solvar Limited (ASX: SVR), the leading provider of specialist finance, has announced its financial performance for the year ended 30 June 2025 (FY25). The company reported a normalised NPAT of $34.1 million, up 17.4% on the prior corresponding period (pcp), and a statutory NPAT of $31.4 million, up 84.4% on pcp. Normalised EPS increased by 21.2% to 16.8 cents, and the company's Return on Equity rose to 9.5% from 7.8% in FY24. Solvar declared a final fully franked dividend of 8.0 cents, taking the full year dividend to 14.0 cents, up 40% on pcp. The company also allocated $35.0 million for an on-market share buyback program, with $23.9 million utilized so far, repurchasing 14.3 million shares at an average price of $1.46 per share. Solvar's balance sheet remains strong, with sufficient unrestricted cash and a 7.4% reduction in drawn Group debt to $587.3 million. The company's Australian loan book grew by 5.3% to $832.7 million, while interest income in Australia increased by 1.4% to $180.3 million. Solvar also launched 'Bennji', a dedicated brand for commercial lending, to take advantage of existing distribution channels. The company's focus on operational excellence, strategic diversification, and prudent credit quality management has positioned it well to capitalize on emerging opportunities and deliver sustainable returns to shareholders.

Solvar expects interest income across its Australian operations to continue growing throughout FY26 as the loan books of the business units continue to expand. The company also expects bad debts to remain within the 3.5% - 4.5% target range for FY26, with the contraction of the New Zealand loan book.

Solvar commences FY26 with confidence and a motivated team focused on providing funding alternatives in specialized markets. The launch of Bennji will propel the company's growth in the commercial lending market, while the conclusion of the ASIC matter, expected in late 2025, and the company's disciplined approach to credit will see improving returns from the Money3 business unit. The continued focus on reducing funder margins will help Solvar compete in the near-prime lending segment, while the expansion of the ABS program will provide funding diversification.