That was a very good half yearly result. They are right on...

That was a very good half yearly result. They are right on target with their guidance. No nasty surprises!

I will focus on the car lending. In the last six months the loan pool went from $35.3M to $40.7M, a $5.4M increase. In simple terms, it grew by approximately $900,000 per month, with the handbrake on. With lending restrictions lifted, they have already flagged a loan pool of $50M by 30 June. To do that, they will need to grow the loan pool by approximately $1.55M per month.

It was great to see the 30 day plus in arrears percentage rate drop from 1.56% to 1.39%. Not bad when you are lending to a customer base that the major banks will not touch. Factor in that FSA is lending at 16%, borrowing from Westpac at under 4%, and charging fees, and you can see that the car lending business has the capacity to completely transform this company.