HomeChoice International, an omni-channel retailer and fintech group, has released its full-year earnings report, showcasing a significant increase in headline earnings by 27.6%. The group also raised its final dividend by 16.9%. CNBC Africa sat down with CEO Sean Wibberley to delve deeper into the company's successful year and its strategies for growth. Wibberley expressed his satisfaction with the group's performance across both retail and fintech divisions, highlighting a 31% growth in profits and a 21% increase in revenue. The retail segment, after facing challenges, has managed to bounce back with an impressive 85% growth in profit before tax, reaching 50 million. Meanwhile, the fintech arm continues its upward trajectory, maintaining a compound annual growth rate of over 30% for the past five years, with 2024 showing continued strength. One of the key drivers behind the retail segment's resurgence has been the company's focus on enhancing the credit health of its portfolio and expanding its showroom presence. By offering customers the opportunity to physically interact with products, such as bedding and curtains, HomeChoice has successfully increased customer engagement and showroom collections, with one-third of customers now opting to collect their purchases in-store. This new showroom experience has been well-received by customers, marking a shift from the company's traditional distance retailing model. In terms of the fintech division, operational challenges, particularly related to debtors, have been addressed, with the implementation of a new arrears collection dialer ensuring more efficient collections. Despite some initial teething problems, the business managed to pivot successfully, focusing on existing customer demand to shape a healthier lending book. Looking ahead, Wibberley discussed the potential impact of interest rate fluctuations on their business. While a reduction in rates could lead to lower credit charges for customers, HomeChoice anticipates a balanced effect due to decreased borrowing costs from lenders. Moreover, a decline in interest rates is seen as favorable for credit worthiness in the economy overall. The company's growth strategy revolves around its Weaver ecosystem flywheel, aimed at increasing market share in lending and insurance. With over 2.7 million Weaver customers and a growing base, HomeChoice aims to leverage its digital platforms to cross-sell products and services, targeting both younger and older demographics. Additionally, the company's focus on data-driven insights from its fintech customers has allowed for tailored targeting, ensuring a diverse customer base across their brands. In response to strategic credit tightening in 2023, HomeChoice expects to maintain this approach in the near term, gradually expanding customer base as credit portfolios stabilize and performance improves. Expanding payment offerings, such as the new digital payment product PayStretch, further demonstrates the company's commitment to innovation. By allowing customers to spread purchases over 12 months, HomeChoice aims to enhance flexibility and affordability, with plans to increase credit limits and terms in the future for larger ticket items. Overall, HomeChoice International's success in 2024 highlights the company's resilience, adaptability, and strategic vision for sustainable growth in the competitive retail and fintech landscape.