Ann: Notice of Annual General Meeting/Proxy Form, page-7

My beloved FSA, like an unfaithful lover, I have been neglecting you of late.

Unfortunately, I was unable to attend the AGM after being caught out in a wild Brisbane storm yesterday. I have however reviewed the AGM presentation and make the following comments.

In relation to the dividend forecast, last year they predicted between 5.25 and 6 cents and paid out 6 cents. This year, they predict between 6.25 and 6.75 cents. Based on their past performance of tending to over deliver, I will work on a 6.75 cents fully franked dividend. A nice return for a buck share. It’s a shame my last buy was at $1.40.

In relation to the 16 per cent growth in new debt agreements for the period July to October 2014, I note the following. The Australian Financial Services Authority releases quarterly bankruptcy statistics. When comparing the September 2013 quarter of 2459 new agreements against the September 2014 record quarter of 3010, the industry growth is approximately 22.5 per cent. While FSA may be losing market share, the end result is that because these types or arrangements continue to increase, the overall number of customers appear to be increasing. This is a good thing and ensures FSA remains a cash cow in relation to its service business.

I am perplexed as to why no market guidance was given for FY15. I am old enough to work out the no news is bad news. I struggle to see another 25 per cent performance. I will work on little or no growth for FY15 and hopefully will be surprised when the half year results are announced. At a buck, they represent good buying. Hopefully the love will return.

Take care. Remain safe.