COG Financial Services expects 25% boost in 1H22 net profit

Be the First to Comment Read
Sponsored

COG Financial Services expects 25% boost in 1H22 net profit

COG Financial Services 1H22 financial performance, COG
Image source: © Alphaspirit | Megapixl.com

Highlights

  • COG is expected to report a 25% spike in its 1H22 net profit after tax.
  • Profit from its finance broking and aggregation business in the first half rose 19% to AU$6.9 million.
  • In the last one year, COG shares have delivered 87% return.

COG Financial Services (ASX:COG) on Thursday (20 January) said its net profit after tax (NPATA) attributable to shareholders is expected to jump 25% in 1H22 compared to the previous corresponding period.

As per the company's unaudited 1H22 trading results, the financial services firm is expected to report a NPATA of AU$10.5 million as against AU$8.4 million reported for the year ago period. This amount excludes government subsidies received in 1H22.

In FY21, the company reported a NPATA of AU$25.39 million as against AU$12.14 million in FY20. However, due to abnormal expenses of AU$42.78 million, its reported net profit after abnormal items stood at negative AU$26.378 million.

ALSO READ: COG Financial Services empowering Australian SMEs to cash in on opportunities

Profit from its finance broking and aggregation business rose 19% to AU$6.9 million in the first half of FY22 as compared to AU$5.8 million clocked in the previous year. However, profit from its lending business declined 17.40 per cent annually to AU$3.8 million, compared to AU$4.6 million last year.

On 1 November 2021, COG announced the completion of a capital raise which was used to increase its stake in two of its existing subsidiaries. The company said, in the two months--November and December--the NPATA contribution from that acquisition amounted to AU$0.3 million.

"If they (NPATA contribution from the acquisition) had been included for the full period (as they will be for next half) then the result for 1H22 would have been $11.2m being a 11% increase on the prior comparable period or a 33% increase if government subsidies are ignored. As COG has done over the last six years, we will continue to consider acquisitions that fit our strategic direction and will be earnings and EPS accretive,” said Andrew Bennett, CEO, COG.

ALSO READ: COG Financial Services empowering Australian SMEs to cash in on opportunities

COG Financial Services share price

Over the last three years, COG has reported strong revenue growth; though on a net basis, it reported losses due to abnormal items.

In FY21, the company reported a NPATA of AU$25.39 million as against AU$12.14 million in FY20. However, due to abnormal expenses of AU$42.78 million, its reported net profit after abnormal items stood at negative AU$26.378 million.

At the time of writing this article, COG shares were unchanged at AU$1.44 apiece on the ASX. However, in the last one year, the stock has delivered a return of 87%. Going by the stock price performance, it seems like the street is optimistic about its future EPS (Earnings Per Share) growth.

ALSO READ: 3 ASX-listed Small cap Players Holding Their Ground- COG, ACF and MAD

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK