Looking at past publication dates, it seems Monzo posts its yearly annual report at the end of June each year. Based on that, I am expecting it to drop today or tomorrow.
What is everyone most interested in reading in the annual report?. What stats, figures or news are you most eager to sink your teeth into?.
I am interested to see if the yearly losses have increased, how much customer unit economics changed in a year, lending growth, executive changes and what the plan for the next year is.
Yeah, as mentioned above, Monzoâs annual report was filed in February 2020, so it is important to remember that Covid had no impact on any of the figures contained within the report.
I would assume that even though the report is for the year ending in February, they will add something to it to address Covid. If not I would expect an update a bit later that will address it as they did last year.
Not strictly true. Although the financials (P&L and Balance Sheet, or whatever they get called now) will be for the financial year to the end of February, pre-Coronavirus, these must be prepared in a manner that reflects the likely trading position of Monzo over the next 12 months.
For example, if Monzo are expected to go bust within the 12 months after their year end, their accounts must be prepared in a different way than if they are expecting to continue trading (called a âgoing concern basisâ).
To make sure the correct method is used, the auditors will look at lots of forecasts, projections, assumptions, etc. that justify Monzoâs perception of the next 12 months, which includes coronavirus. Within the Independent Auditors Report (included within the Annual Report), itâs likely weâll see some wording around how they perceive this, any material uncertainties, key assumptions used, etc.
Iâd also expect this to be heavily spoken about in the Directorsâ Report as itâs quite fundamental to Monzo as a business.
And as a footnote to the above, assessment of âgoing concernâ is coming under massive scrutiny at the moment and itâs really being focused on by auditors. This likely means that theyâll be performing significantly more work on this to get comfort on Monzoâs outlook.
Theyâll also be looking at the valuation of certain assets, such as Monzoâs loan book. For example, loans and overdrafts may now be at a significantly higher risk of default owing to the pandemic which could result in future losses to Monzo. The balance in the Annual Report will therefore need to be assessed and maybe written-down / impaired.
Thereâs the potential lots of things like this could cause the filing / release of the Annual Report to be delayed a bit from previous years.
(Edited to include Monzoâs loan book as this one thing Iâm particularly interested in).
