Domestic credit provider Money3 has posted a solid 1H17 result reporting an NPAT of $13.7m, well ahead of market expectations. New management installed last year have now proven themselves by profitably driving the company’s new strategic direction. Previously exposed to the controversial (and regulatory risky) small amount credit contracts (SACC), this book of small, unsecured personal loans now amount to less than 14% of MNY’s loan book. The loan book has been expanded through a push towards securitised automotive loans through the company’s Personal Finance Co. brand. All business metrics look outstanding: bad debts have fallen from 3.5% to 2.5%; EBITDA margins are over 45%; and a further 2.5c dividend has been declared. We see this as an attractive value/turnaround play with full year guidance upgraded to $27.5m NPAT which is being generated from a surprisingly modest current market cap of $255m.