The finance group has had a record-breaking year as demand for asset finance rises and broker volumes spike.
Asset finance broking and aggregation group COG Financial Services Limited (COG) has released its financial results for the financial year 2022 (FY22), revealing a record year in lending.
According to the group — the parent of Platform Finance and Consolidated Finance Group as well as a range of other finance broking and aggregation companies in which they have a smaller stake (including QPF Finance, Centrepoint Finance, Westlawn and Linx Australia) — broker volumes jumped 30 per cent to finance $6.7 billion of net assets over the year.
Growth accelerated in the second half of the year, when $3.4 billion was financed.
The group reportedly has a 21 percent market share and suggested that one in five assets financed during FY22 had therefore been facilitated by a member of the group.
Following the group’s acquisition of Westlawn, the reported value of the businesses’ total lending book is now $220.4 million and includes COG’s 100 per cent-owned subsidiary TL Commercial Finance’s legacy portfolio of $31.8 million and a receivables portfolio of $188.6 million from Westlawn.
New lease and loan originations rose 46 per cent to $151.9 million (FY21: $104 million), including $101.9 million of chattel mortgages.
Noting the figures, Ryan Young, Platform Finance CEO, said the “astounding growth” demonstrates “how resilient the sector is and that a record number of businesses invested in new vehicles, equipment and machinery during the year”.
“The sector has truly defied expectations that the pandemic would throttle asset finance. Transport, construction, agriculture, forestry and infrastructure/civil works have all been performing strongly, which has led to a surge in asset purchases.
“Consumer lending has also been buoyant over the year, with people purchasing private motor vehicles, caravans and boats, spending on home improvements, and consolidating debt,” he said.
According to COG, in the past year alone, their broker network has “outperformed the market by at least two times”.
“[This] really proves we are partnered with the best,” Mr Young said.
“[It] both reflects and reinforces our commitment to helping [brokers] succeed and take market share, and it gives us the confidence to redouble our investments in the sector,” he continued.
Mr Young said he believes the investment in Westlawn, the group’s in-house finance company, is proof of the company’s commitments to investing in technology, staffing and product.
“Our scale allows us to make this a fully-fledged finance company rather than just another while label — and it’s exclusive to our broker network,” he says.
“The more our brokers grow, the more we can grow that service,” he added.
“The same dynamics apply to staffing, complementary products (e.g. novated leases, car buying and insurance), and to technology.
“COG is fully focused on asset finance — and if this run-rate continues, it means we can continue to invest and provide our brokers with more and more of what they expect and need to boost productivity and separate themselves from the competition.”
Young said that these record-breaking results for FY22 was a sign that asset finance “has finally come out of the shadows”.
“Asset finance has always been strong, but the sector has largely been invisible. Not only does COG give the sector an identity, but our results also highlight the strength of the market and show other investors, including funders, that this is a sector worth investing in,” he said.