COG Financial Services (COG) Q1 2025 TU earnings summary

Executive summary

• Q1 FY25 unaudited NPATA to shareholders was $5.2m, down from $6.2m in Q1 FY24, reflecting a 7% decrease year-over-year after adjusting for the reduced contribution from TL Commercial.

• TL Commercial's NPATA contribution dropped from $0.7m in FY24 YTD to $0.1m in FY25 YTD, with limited further profit expected from this business.

• Margin improvement observed in the Lending business as lower margin assets are replaced with higher margin assets.

Segment performance

• Finance Broking & Aggregation NPATA was $2.1m in Q1 FY25, down from $2.3m in Q1 FY24.

• Novated Leasing NPATA increased to $2.5m in Q1 FY25 from $2.3m in Q1 FY24.

• Asset Management & Lending NPATA was $1.3m in Q1 FY25, down from $2.2m in Q1 FY24.

• The Other segment, including equity-accounted associates, posted a loss of $0.7m in Q1 FY25 versus a $0.6m loss in Q1 FY24.

Outlook and guidance

• Growth opportunities identified in all three business segments through organic expansion and market consolidation.

• Novated Leasing segment expects further growth, leveraging tax incentives for electric vehicles.

• Lending business margins are expected to continue improving as asset mix shifts.