FSA Group (FSA) H1 2025 earnings summary

Executive summary

• Transitioned fully to a lending-focused business, with services in hibernation and a new emphasis on asset finance and broker channels.

• Operating income rose 20% to $30.5m and profit before tax increased 26% to $6.4m for the half-year ended 31 December 2024 compared to the prior year.

• Net cash inflow from operating activities surged 85% to $8.3m.

• Loan pools grew 21% to $878m, driven by strong origination in car loans and asset finance.

Financial highlights

• Operating income: $30.5m (+20% year-over-year); profit before tax: $6.4m (+26%); profit after tax attributable to members: $3.9m (+23%).

• EPS (basic and diluted): 3.23c (+23% year-over-year).

• Return on equity improved to 9% from 7% in the prior period.

• Net cash inflow from operating activities: $8.3m (+85%).

• Fully franked interim dividend of 3.50c per share declared.

Outlook and guidance

• Forecast profit before tax for FY2025 in the range of $14m to $18m.

• Expect continued growth in new origination and loan pools, with operating leverage benefits as pools scale.

• Anticipated cash rate decreases in 2025 seen as a profitability tailwind.