Butn Limited (ASX:BTN) Announces Record 1H25 Profitability and Growth
Financial Performance
Butn Limited reported a 5% increase in 1H25 revenue, reaching $7.1 million compared to $6.8 million in the previous comparable period. Revenue margins improved to 3.0% from 2.7%. EBITDA surged to $4.3 million from $1.4 million, and profit after tax turned positive at $0.2 million from a loss of $3.2 million. Operating cash flow also improved to $0.6 million compared to a loss of $1.9 million.
Platform Growth
The company’s platform distribution channel achieved record originations, now accounting for approximately 35% of total monthly originations. This growth highlights the increasing adoption of Butn’s services within the SME community and the expanding diversity of strategic partners.
Improved Financial Position
Management’s business optimisation initiatives in FY24 led to significant reductions in operating costs and enhanced sales efforts. These measures contributed to the positive EBITDA and operating cash flow. Bad debts remained under 0.1% of total originations, maintaining Butn’s strong internal discipline.
Growth Opportunities
Butn continues to explore both organic and inorganic growth avenues, including entry into the APAC Crypto-Backed Lending Market and the launch of its Private Retail Credit Fund. The company also announced an agreement with APX Lending to enhance its presence in the crypto-backed lending sector.
Executive Comments
Rael Ross, Co-founder and Co-CEO, stated, “We have achieved an excellent result in 1H25, delivering record revenue of $7.1 million at an improved revenue margin of 3.0% and our first half year profit of $0.2 million. Our platform distribution channel continues to perform well, with both record originations and revenue for 1H25. The 1H25 profit result was also achieved on the back of management’s FY24 business optimisation initiative which saw a significant reduction in operating costs and improved sales efforts. Together with our record revenue, this has led to an improved positive EBITDA result and a positive operating cash flow position in 1H25. Despite business usually tapering in the post-Christmas and January holiday period we are pleased to report, that in January 2025 the company achieved record originations to begin our Q3FY25, signifying our strong and robust business with a client base consistently utilising our cashflow funding services. Following our entry into the APAC Crypto-Backed Lending Market and the launch of our Private Retail Credit Fund, we look forward to further growth milestones.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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