Nutun (NTU) H1 2025 earnings summary

Executive summary

• Completed major restructuring, simplifying group structure and disposing of non-core operations, resulting in reduced overheads and strengthened balance sheet.

• Focused on two core businesses: Nutun South Africa (NPL acquisition/collections) and Nutun International (BPO/customer engagement).

• Name changed to Nutun Limited on 5 March 2025, reflecting new strategic direction.

• H1 FY25 results show restructuring benefits, but full impact will take time to embed; both businesses are well positioned for growth.

• Disposed of WeBuyCars, Nutun Australia, Nutun Transact, and Mobalyz, simplifying operations.

Financial highlights

• Revenue from continuing operations was R1,480m, down 4% year-over-year; EBITDA fell 16% to R615m.

• Core loss from continuing operations improved to R71m from R104m in H1 2024; core EPS up 33% to -9.1c.

• Basic EPS from continuing operations fell to -15.6c (H1 FY24: -7.4c); total operations core earnings improved 95% to a loss of R71m (H1 FY24: loss of R1,549m).

• Net finance charge improved 77% to R52m (H1 FY24: R230m); net interest cost decreased by 33% to R233m.

• Cash and cash equivalents at period end were R118m, down from R1,147m in H1 2024.

Outlook and guidance

• Positive outlook for NPL book buying in 2025 as market liquidity improves and interest rates decline.

• Nutun International sees growth potential in US market and continued support for South Africa as a global BPO hub.

• Strategy focused on leveraging technology, data, and AI to enhance performance and profitability.

• Management maintains a positive medium- and long-term outlook, citing enhanced liquidity and a streamlined business model.

• No cash dividend declared; dividend suspension continues until restructuring is complete.