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Non-bank lender posts 5% drop in profit in FY18

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Non-bank lender posts 5% drop in profit in FY18

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Reporter 1 minute read

Publicly listed non-bank lender FlexiGroup Limited reported a $4.8 million year-on-year decline in net profit in the 2018 financial year.

FlexiGroup booked a full-year cash profit of $88.2 million for the 12 months ending on 30 June 2018, down by 5 per cent from the $93 million posted in the previous financial year. Despite the fall, the profit was at the top end of its guidance and included $2.5 million post-tax in restructuring costs.

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The lender’s transaction volumes rose by 17 per cent to $2.3 billion as the number of retailers on its network increased by 8 per cent to 46,000 and the total number of consumers grew by 5 per cent to more than 1 million.

The key growth drivers in the business are its Certegy products, including EziPay, that allow consumers to buy products and services on instalments, as well as its Australia Cards business, which holds the interest-free Skye Card Mastercard.

“With strong growth momentum, FlexiGroup is well positioned for FY19,” acting CEO Ross Aucutt said.

“Growth in Certegy and Australia Cards combined with cost control and funding efficiencies will be strong contributors. After significant investment, the Ireland business is on track to be profitable this year.”

Mr Aucutt, who is also the lender’s CFO, has been acting CEO for two weeks, following the sudden resignation of former CEO of three years, Symon Brewis-Weston.

Mr Brewis-Weston will be replaced by Prospa’s Rebecca James from mid-October.

Non-bank lender posts 5% drop in profit in FY18
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