COG Financial Services (COG) H2 2024 earnings summary

Executive summary

• Revenue grew 36% year-over-year to $495.6m, driven by organic growth and acquisitions, with NPATA to shareholders up 2% to $24.2m and EPSA flat at 12.56cps.

• Novated Leasing segment delivered outstanding results, with NPATA increasing to $8.5m from $4.0m year-over-year, while Finance Broking & Aggregation and Asset Management & Lending maintained strong business volume growth.

• Continued execution of acquisition strategy, including purchases of NFC, UFS, Community Salary Packaging, and a 20% stake in Centrepoint Alliance.

• Fully franked final dividend of 4.4cps declared, with total FY24 dividends at 8.4cps, matching the previous year.

Financial highlights

• Underlying revenue (excluding interest income) reached $495.6m, up 36% on prior corresponding period (pcp).

• EBITDA to shareholders was $37.1m, up 9% on pcp; NPATA to shareholders was $24.2m, up 2% on pcp.

• Statutory NPAT increased 34% to $24.2m; statutory EBITDA from core operations rose 24% to $53.0m.

• Net Assets Financed settled rose 15% to $8.9bn, representing an estimated 21% market share in broker-originated commercial equipment finance.

• Net cash inflow from operating activities was $46.4m, with cash and cash equivalents at $125.7m at year-end.

Outlook and guidance

• Novated Leasing expected to continue delivering strong organic growth, leveraging tax incentives for electric vehicles.

• Strong balance sheet with unrestricted cash of $90.8m positions the company for further organic and acquisition-driven earnings growth.

• Ongoing investment in broker aggregation, cyber security, and operational systems; focus on building a retail fixed income product.

• Ongoing focus on strategic acquisitions to supplement organic growth.