Although the S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has recovered from its 3% fall in March, there are still a number of winning growth companies caught up in the falls which have some way to go before fully recovering.
FlexiGroup Limited (ASX: FXL) is one I have my eye on. FlexiGroup provides leasing and financing to consumers through retailers like Harvey Norman Holdings Limited (ASX: HVN). Shares in FlexiGroup have fallen from $4.20 in February to $3.72 today and are down almost 17% for the year.
This is in spite of a stellar first-half result which grew cash net profit after tax (NPAT) by 20% and a full-year growth forecast of 17%-19%. The company's smart acquisition of Lombard & Once Credit is likely to be a big driver of value for shareholders going forward. Cash NPAT grew from $1 million to $5.1 million in the first half of FY14 and customer numbers grew 31%.
Another fast grower on my watchlist after a steady decline this year is Ainsworth Game Technology Limited (ASX: AGI). The company is majority owned by founder and billionaire Len Ainsworth, the man also behind Aristocrat Leisure Limited (ASX: ALL).
AGT's first-half FY14 result saw earnings before tax jump a huge 51% to $45.6 million. A highlight was the 380% increase in revenues out of South America which accounts for 70% of the company's international revenue. The group expects growth in revenue and profitability from all global markets in the second half of FY14, driven by new opportunities in North America.
Another company I am watching closely is Yellow Brick Road Holdings Limited (ASX: YBR), an ambitious wealth management company which is aggressively growing branches throughout the country. The company is quickly establishing brand awareness and about to set out on the next phase of growth targeting 184 branches by the end of first-half 2014, from 149 branches in the prior corresponding period.
Foolish takeaway
Buying growing companies at reasonable prices and holding for the long term is a strategy which has a good chance of paying off over time. After recent share price falls and with plenty of growth to come it's not too late to buy.
