valuing the stock, page-5

Debt agreements figures were released earlier in the month by the AFSA. You might recall that for FY2015, FSA had a 48% market share of debt agreements in Australia.

The AFSA has recently announced that FY2016 was a record year for debt agreements with a total of 12,150 agreements being entered into compared to 10,911 in FY2015. The first half being 5,853 and the second half being 6,297, which was 20.04% growth when compared to the second half of FY2015.

From my calculations, FSA market share dropped to 41.77% in the first half of FY2016. They announced 2,445 new customers for that half. They certainly didn’t announce the market share drop however they did state that there was a six percent drop in new customers for debt agreements.

Given the 20% increase in the market size for the second half of FY2016, I will be surprised if there is a drop in FSA debt agreement customer numbers for the second half. It will certainly be interesting to see if their market share has recovered in the second half. Let’s hope. The debt agreement business is a cash cow for FSA.