COG Financial Services Limited Releases Audited FY24 Results
COG FINANCIAL SERVICES LIMITED (COG) Share Update August 2024 Tuesday 27th
COG Financial Services Announces Strong FY24 Results
COG Financial Services Limited (ASX: COG) has released its audited financial results for the year ending 30 June 2024, showing a solid performance across its business segments.
Instant Summary:
- 2% increase in underlying NPATA to $24.2 million.
- EPSA remained flat at 12.56 cents per share.
- Fully franked final dividend of 4.4 cents per share declared.
- Total FY24 dividends of 8.4 cents per share, yielding 7.5%.
- Net Assets Financed (NAF) increased by 15% to $8.9 billion.
- Assets under management grew by 19% to $936.3 million.
- Acquired 100% interest in National Finance Choice and United Financial Services.
- Acquired 20% interest in Centrepoint Alliance Limited.
- Acquired Community Salary Packaging through subsidiary Paywise.
Financial Performance
COG Financial Services Limited (COG) has announced its audited financial results for the fiscal year ending 30 June 2024. The company reported a 2% increase in underlying net profit after tax and before amortisation (NPATA) to $24.2 million, up from $23.7 million in the previous fiscal year. This is a notable achievement considering the challenging economic environment.
The earnings per share after amortisation (EPSA) remained flat at 12.56 cents per share. COG declared a fully franked final dividend of 4.4 cents per share, bringing the total FY24 dividends to 8.4 cents per share, which equates to an annualised dividend yield of 7.5%, up from 6.1% in FY23.
Segment Performance
COG's Finance Broking & Aggregation segment reported a NPATA of $11.1 million, down from $13.2 million in FY23. The Novated Leasing segment saw a significant increase in NPATA to $8.5 million, up from $4.0 million in the previous year. The Asset Management & Lending segment reported a NPATA of $6.7 million, down from $10.1 million in FY23.
Strategic Acquisitions
COG made several strategic acquisitions during FY24. The company acquired a 100% interest in National Finance Choice and United Financial Services through its subsidiary COG Aggregation. Additionally, COG acquired a 20% interest in Centrepoint Alliance Limited and the salary packaging business known as Community Salary Packaging through its subsidiary Paywise.
Growth and Outlook
The company reported a 15% increase in Net Assets Financed (NAF) to $8.9 billion, representing an estimated 21% market share of broker-originated NAF for commercial equipment finance. Assets under management grew by 19% to $936.3 million. Looking ahead, COG expects significant ongoing organic growth in its Novated Leasing segment and plans to continue identifying strategic acquisitions to bolster its growth trajectory.
The positive financial performance and strategic acquisitions are likely to boost investor confidence in COG Financial Services. The increase in dividends and strong growth in assets under management indicate a robust business model. However, the decline in NPATA for the Finance Broking & Aggregation and Asset Management & Lending segments may raise some concerns among investors.
Investor Reaction:
Analysts are likely to react positively to the overall growth and strategic acquisitions, which position COG for future expansion. The flat EPSA and segment-specific declines may be points of discussion, but the company's strong balance sheet and growth prospects should mitigate major concerns.
Conclusion:
Investors should consider COG Financial Services' strong financial performance and strategic acquisitions as positive indicators for future growth. The company's resilience and ability to adapt to market conditions make it a compelling investment opportunity. Stay tuned for further updates and strategic moves from COG.