No worriesIn relation to the home lending business, the...

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.