FSA Group (FSA) H2 2024 earnings summary

Executive summary

• Completed transition to a lending-focused business, offering home, car, personal loans, and asset finance; new origination rose 23% to $385m and loan pools grew 25% to $801m year-over-year.

• Profit before tax fell 40% to $12.6m and net profit after tax attributable to members declined 43% to $7.3m compared to FY2023, mainly due to margin compression from rising cash rates.

• Lending business generated $14.8m profit before tax; services business (now under "Other") posted a $2.2m loss.

• Full year fully franked dividend maintained at 7.00 cents per share.

Financial highlights

• Total group operating income decreased 5% to $52.1m year-over-year.

• EPS dropped 43% to 6.05 cents; net cash inflow from operating activities down 31% to $14.9m.

• Shareholder equity attributable to members was $87.1m, down 1% from prior year.

• Return on equity declined to 8% from 15% in FY2023.

Outlook and guidance

• Targeting annual new origination above $600m and loan pools of $1.3b, supported by automation and broker channel expansion.

• Aims for profit before tax of ~$36m and return on equity above 25% as scale is achieved.

• Margin expected to improve as new fixed-rate loans are originated at higher rates; growth depends on broker uptake and funding availability.