Shares of financial services business FlexiGroup Limited (ASX: FXL) skyrocketed on Thursday after the company delivered a strong set of half-year results. The stock rose a staggering 13.82% to be trading at $3.46, representing a gain of 42 cents per share.
In the half-year period, FlexiGroup's net profit after tax (NPAT) rose to $38.5 million, an 11% increase on the prior corresponding period (pcp), while total portfolio income was lifted by 9% to $164.4 million. Meanwhile, the company reaffirmed its full-year cash NPAT guidance of $90-$91 million after its half-year cash profit rose 9% to $42.5 million.
The company's solid growth over the half was underpinned by a 10% growth in receivables, as well as 9% volumes growth, driven by growth in each of the company's five business segments. Commenting on the result, FlexiGroup's chief executive officer Tarek Robbiati said: "Looking at the business divisions it is worth highlighting the turnaround in the Consumer and SME Leasing segment, which has shown positive Cash NPAT growth in 1H15, for the first time since FY11."
Robbiati also said that the company had become increasingly focused on the digital finance opportunity and that FlexiGroup was "well positioned to become the digital finance leader in Australia and New Zealand."
To top off a solid report, FlexiGroup said it would pay a fully franked interim dividend of 8.75 cents per share, representing a 9% increase compared to its interim dividend last year. In a low interest rate environment, it's hard to beat a rising dividend.
