Flexigroup flexes its muscles

The financial services group is forecasting more strong growth ahead.

a woman

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Flexigroup (ASX: FXL), a company which offers leasing, vendor financing and other payment solutions across a broad customer base and industry range has released another impressive set of financial results. The results show strong organic growth plus the benefits of recent acquisitions.

The company grew its receivables volumes by 16% to $907 million. Volume levels are an indicator of Flexigroup's market penetration. The company also grew cash profits by 18% to 72.1 million and cash earnings per share to 25.1 cents per share (cps). A final dividend of 7.5 cps has been declared which is an increase of 15% on last year.

While the 2013 results were strong, of equal importance for shareholders was management's guidance for the 2014 financial year. Management is forecasting that cash profit will grow by between 17% and 19% which implies a cash profit range between $84 million and $86 million.

Flexigroup's results and particularly its 2014 outlook bodes well for the other companies which provide leasing options to consumers including Thinksmart (ASX: TSM), Thorn Group (ASX: TGA) and Silver Chef (ASX: SIV). Shareholders in these companies will be hoping that business is tracking as favourably for them as it is for Flexigroup.

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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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