agm, page-5

No worries

In relation to the home lending business, the Directors stated that until market conditions improve, they didn’t intend growing the loan book from its current level of approx. $230M.

I believe that for every dollar borrowed, FSA currently contributes 5%. So if the loan book increases by $1M, the company ties up a further $50,000. From what I can gather, currently it’s not a good return on investment. They believe in the future that they can get the 5% contribution level down.

I hope that makes sense.

I regret not asking about their mortgage broking activities for Bendigo Bank. I will be better prepared next year.

Two things that I like. All the Directors own script. FSA also increased their marketing expenses by approx. $1M last financial year. For a business that only started 10 years ago with 4 staff, it has certainly been a success story. Watch out for new adds on the tellie.

The Directors and Secretary were very friendly. I was also given a quick guided tour of the business premises.

Unfortunately the share price is heading in the wrong direction for me at the moment.