Wisr's share price could rise despite CEO's arrest

ASX-listed fintech Wisr (ASX: WZR) could see its share price benefit from efforts to improve profitability, as the company's levels of loan origination continue to post robust growth.

These improvements mean WZR could be well-positioned to withstand any fallout from the recent ousting of former CEO Anthony Nantes after he was charged with criminal offences and held without bail.

Efficiency drive proves successful

WZK achieved a sizeable reduction in expenses alongside a sharp rise in revenues in the final quarter of the 2023 financial year.

The company saw positive operating cash flow of $2.6 million and EBITDA of $900,0000 in Q4 FY23, on the back of efforts to improve profitability by dialing back the pace of loan origination.

These efforts resulted in a 21% drop in operating expenditures compared to the preceding quarter, despite revenues rising 39% compared to the previous corresponding period to hit $24.6 million.

WZR's loan book also grew 19% compared to the previous corresponding period to reach $931 million, after facilitating $53 million in loan originations in the quarter.

Sydney-headquartered WZR is a non-bank lender that focuses on providing online financial services to the consumer sector via a peer-to-peer lending model.

The company refers to itself as a 'for purpose neo-lender' while touting its mission of '[bringing] financial wellness to the world'. Speaking to InfoChoice, former CEO Anthony Nantes said this corporate mandate means'giving our customers a fair deal on finance and [setting them] up for the future.'

Ex-CEO Anthony Nantes held without bail

The improvements to WZR's operating efficiency arrive at an especially fraught time for the company, with it recently firing CEO Anthony Nantes following accusations of inappropriate behaviour towards staff and the filing of criminal charges against the P2P company's chief executive.

On 16 August WZR announced the immediate termination of Nantes and the appointment of financial officer Andrew Goodwin as his replacement.

The WZR board said that it had 'formed a view in recent months that Anthony was unable to perform the role of CEO to the level required'.

WZR followed the announcement with an update on 21 August, stating that Nantes' termination was not due to 'any financial irregularity or regulatory contravention' and that it would continue to conduct business as usual.

AFR reports that on 19 August, police charged Anthony Nantes with stalking and refused him bail. Authorities have also applied for an apprehended violence order against Nantes on behalf of a WZR employee, in what is reported to be a separate matter.

The arrest arrives after the Federal Circuit Court rebuked Nantes in September 2022 over the unlawful firing of a female employee, issuing the company a fine of over $50,000.

The move has embroiled another executive on the WZR team - chairman John Nantes, who is Anthony Nantes' brother.

John Nantes has temporarily recused himself from his position, stating that he would take a two-month leave of absence in order to prevent any conflicts of interest while the WZR board makes arrangements for his brother's termination.

While John Nantes said he was not involved in the deliberations that led to Anthony Nantes' removal, he expressed his support for the board's decision.

Matthew Brown, chair of WZR's audit and risk committee, will serve as interim chair during John Nantes' leave of absence.

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