COG Financial Services Limited - FY2024 Financial Results Announcement
COG FINANCIAL SERVICES LIMITED (COG) Share Update August 2024 Tuesday 27th
COG Financial Services Announces Strong Financial Growth for FY2024
COG Financial Services Limited (ASX: COG) has released its preliminary final report for the financial year ended 30 June 2024, showcasing significant growth in revenue and net profit.
Instant Summary:
- Revenue from continuing operations increased by 36.3% to $498.977 million.
- Net profit from continuing operations rose by 34.6% to $24.170 million.
- Earnings per share attributable to members increased to 6.67 cents from 4.26 cents.
- Final dividend declared at 4.4 cents per share, 100% franked.
- Net tangible assets per share decreased to -16.91 cents from -13.43 cents.
Financial Performance
COG Financial Services Limited reported a substantial increase in revenue and net profit for the financial year ended 30 June 2024. Revenue from continuing operations reached $498.977 million, a 36.3% increase from the previous year. The net profit from continuing operations also saw a significant rise, increasing by 34.6% to $24.170 million.
The net profit after tax attributable to members was $12.851 million, up 59.5% from $8.055 million in the previous year. This resulted in earnings per share of 6.67 cents, compared to 4.26 cents in the prior year.
Dividend and Shareholder Returns
The Board declared a final dividend of $8.642 million, equivalent to 4.4 cents per fully paid ordinary share. This dividend will be paid on 2 October 2024 and is 100% franked. The ex-dividend date for entitlement is 2 September 2024, with a record date of 3 September 2024.
Net Tangible Assets
Despite the strong financial performance, the net tangible assets (NTA) per share decreased to -16.91 cents from -13.43 cents. This decrease reflects the Group's acquisition of controlling interests during the year.
Strategic Acquisitions and Growth
COG Financial Services continued to expand its market presence through strategic acquisitions. Notable acquisitions include a 100% interest in National Finance Choice and United Financial Services, and a 20% equity interest in Centrepoint Alliance Limited. These acquisitions are expected to enhance the Group's service offerings and market share.
Outlook
The company remains focused on its corporate strategy of building Australia's leading finance broking and aggregation services provider in the SME sector, delivering profitable growth in asset management and lending, and expanding its lending into risk-priced asset finance.
The strong financial performance and strategic acquisitions are likely to positively impact COG Financial Services' stock price. The increase in revenue and net profit demonstrates the company's successful implementation of its growth strategy. However, the decrease in net tangible assets per share may raise some concerns among investors.
Investor Reaction:
Analysts are expected to react positively to the substantial increases in revenue and net profit. The strategic acquisitions and declared dividend further reinforce the company's growth prospects. However, the decrease in net tangible assets per share might be a point of caution for some investors.
Conclusion:
Investors should consider the strong financial performance and strategic initiatives of COG Financial Services when making investment decisions. The declared dividend and growth in earnings per share highlight the company's commitment to delivering shareholder value. Monitoring the company's future acquisitions and their impact on financial metrics will be crucial.