Flexigroup Limited (ASX: FXL) – Flexigroup share price arrowed up on FY18 results release

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Flexigroup share price arrowed up on FY18 results release

The share price of consumer finance group, Flexigroup Limited (ASX: FXL) rallied 26.72% to $2.3 as company reported FY18 profit at higher end of guidance range. In the full year results release for the period ended 30 June 2018, Flexigroup today, as at 21 August 2018, posted cash net profit after tax of $88.2 million, lower than $93 million in FY17 but in line with guidance.

The statutory profit after tax decreased to negative $10.3 million as compared to $87.4 million in FY17. This negative change in profit resulted from one-off transactions over the past 12 months. However, company has recorded 5% growth in total customers number to above 1 million and 8% growth in retail partners. Group volume for FY18 grew 17% to $2.3 billion while closing receivables were up 10% to $2.38 billion. The company focuses on digital acceptance, resulting to which 60% of all contracts were settled digitally end to end.

The Board of Directors declared a fully franked final dividend of 3.85c per share bringing the FY18 total dividend to 7.70c per share. Final dividend is scheduled for payment on 12 October 2018 to shareholders registered on the record date of 7 September 2018.

Acting Chief Executive, Ross Aucutt said, “Growth in Certegy and AU cards combined with cost control and funding efficiencies will be strong contributors in FY19.”

The company provided FY19 Cash NPAT guidance of $95-$100 million which represents 8-13% Cash NPAT growth over the previous corresponding period.

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