Shares in Australian finance firm, Solvar (ASX:SVR), plummeted as much as 27.2% to A$1.270, marking the company’s most severe single-day percentage drop since March 19.

This caused the stock to drop to its lowest value since April 28.

Solvar (ASX:SVR) disclosed that the company’s net profit after tax (NPAT) for FY24 would suffer from the annual cost of the rate hike cycle introduced by central banks.

The finance company anticipates an annualized NPAT for the fiscal year 2024 between A$24 million and A$30 million, significantly lower than this year’s NPAT of A$47.6 million.

However, the company also stated that it expects the EBITDA for FY24 to remain on par with the figures for FY23.

So far this year, the company’s stock has fallen by 4.6%, up until the last closing bell.

Solvar (ASX:SVR) is an Australian finance firm dealing with various financial services.

(Exchange rate: $1 = 1.5307 Australian dollars)