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Solvar Limited (ASX:SVR)

ALERT: Price-sensitive ASX Announcement for SVR
Current share price for SVR : $1.720 0.125 (7.84%)+
Announcement
Release
19 Aug 2026 9:38AM
Price at Release
$1.595
Full Release
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Summary
In the FY26 results presentation for Solvar Limited, the company reported a reduction in impairment and bad debt expenses, largely due to a one-off sale of a written-off book in New Zealand. The operating expenses declined following the conclusion of regulatory matters, contributing to a normalised NPAT increase to $36.1 million. The company improved its earnings quality through growth in the Automotive Financial Services (AFS) sector and diversification into commercial lending. Solvar executed substantial share buybacks, purchasing 31.9 million shares for $48.9 million since FY23, and managed a decline in group interest income due to a reduced loan book in New Zealand, with plans for Australian loan book growth to compensate in FY27. Cash repatriation efforts from New Zealand will aid capital management, and commercial lending regulatory matters with ASIC have been resolved. Looking forward to FY27, Solvar anticipates double-digit growth in its loan book, aiming to surpass a $1 billion milestone.
Key Points
  • Impairment and bad debt expense reduced year on year driven by one-off sale of written-off book in New Zealand.
  • Operating expenses declined due to concluded regulatory matters.
  • Normalised NPAT increased to $36.1 million.
  • Improvement in earnings quality through growth in AFS and commercial lending diversification.
  • Solvar bought back 31.9 million shares for $48.9 million since FY23.
  • Group interest income declined due to the reduced loan book in New Zealand.
  • Australian loan book growth is expected to replace New Zealand interest income in FY27.
  • Cash repatriation from New Zealand rundown supports capital management activities.
  • Commercial lending concluded regulatory matters with ASIC.
  • Double-digit loan book growth expected to surpass the $1 billion milestone in FY27.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.