FlexiGroup flexes muscles with FY profit
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SYDNEY, Aug 9 AAP
August 09 2012, 12:22AM
Australian financial services company FlexiGroup says its cash profit is likely to grow by up to 16 per cent in the year ahead as it searches for a new chief executive.
The diversified group, which sells a variety of financial products, exceeded guidance by posting a net profit growth of 14 per cent in the year to June 30, 2012.
Full year profits jumped to $59 million from the $51 million made in the corresponding period.
It declared a fully-franked dividend payout of 6.5 cents, one cent higher for the same period last year.
The group attributed its performance to the growth of new businesses, both start ups and acquisitions.
It said it will leverage those products, Lombard, Certegy and FlexiCommercial, to drive an expected growth of between 11 per cent to 16 per cent in cash profit in the 2013 financial year.
"Together our diverse business and funding capabilities provide FlexiGroup with a platform for significant growth in FY13 and FY14 from volume of new business, receivables outstanding and NPAT (net profit after tax)," chief executive John DeLano said.
Mr DeLano, who spent almost a decade at the company, also used the opportunity to announce he would step down from his post at the end of the year, returning to the US for family reasons.
"It was not an easy decision but my wife and I wanted to experience living and work overseas. My kids and family are my greatest priority," Mr DeLano said during a conference call on Thursday.
"The timing is also right for me, I'd like to think that I'm going out when the company is doing so well."
Mr DeLano will continue to advise the company as a consultant in 2013 and will be part of the transition process for the firm, which has now started its global search for a new CEO.
He said the outlook for the business was quite strong and the company expect its receivables growth will continue to 2014.
FlexiGroup shares were down 21 cents, or 6.23 per cent, to $3.00 at 1209 AEST.
By Rashida Yosufzai