It is interesting that following my post of late yesterday we...

It is interesting that following my post of late yesterday we have a business update @ 9.24am this morning from FFF.

I don't believe I can claim any influence in this latest missive turning up from Dustine Pang, however......maybe the posts on FC are actually ready by people @ FFF.

The announcement stated -

" FY 2014 HALF YEAR SETTLEMENT VOLUMES AND EARNINGS GUIDANCE.

During the half year ended 31 December 2013, Firstfolio Limited (ASX: FFF) completed its operational restructure into two businesses, eChoice, comprising its retail focussed loan aggregation and broking operations, and Folio Mortgage & Finance, comprising its wholesale finance, franchise and leasing operations.
Settlement Volumes for the six month period, Group settlement volumes were 10.1% higher than the prior corresponding period (pcp) at approximately $1.6 billion. The improvement in settlement volume included an increase
in eChoice’s settlement volumes of approximately $270 million (up 28% vs pcp).
This was partly offset by an approximate $125 million decrease in Folio’s settlement volumes (down27% vs pcp). Wholesale mortgage settlements were the main area for decrease in this period. The decline in Wholesale settlements reflects a decision to focus on process improvement and re-launch of the Folio business in the first 3 months of the financial year. This approach directly impacted short term settlement volumes, however, the sales pipeline has grown strongly in November and December.
Loans under management were $18.5 billion at 31 Dec
ember 2013, down approximately 2% since 30 June 2013.
As outlined at the 2013 Annual General Meeting, with the operational restructure now complete, Firstfolio is now focussed on improving shareholder value by targeting the most profitable long-term sales opportunities and not low margin settlement volumes.
EARNINGS GUIDANCE.
Firstfolio expects its unaudited cash Operating EBITDA
before accounting adjustments for the six month period ending 31 December 2013 to be approximately $6.5 million. This is 22% lower than the prior corresponding period (1H FY13: $8.3 million), reflecting the previously highlighted change in the mix of settlements from the company’s higher margin Folio business to the eChoice business. During
the half year, Firstfolio’s cash flows enabled the
company to repay $3.1 million in debt, to finish the
period with borrowings of approximately $60.5 million, and service its interest cost of $2.1 million.

In accordance with accounting policies adopted in the prior corresponding period, Firstfolio expects to record a non-cash accounting adjustment, of approximately $3.5 million, in its 2014 half year results associated with a change to the net present value recognition of trail commissions.
The Company notes the compilation and audit review
of its half year accounts is currently underway and expects to release the half year financial statements on or around 20 February 2014. As part of the normal accounts completion process the Board will consider the impact, if any, of this week’s Recapitalisation Proposal Update announcement on the carrying value of assets.
Dustine Pang
Company Secretary.."


The final comment could be a signal (and softening up of minority shareholders) of planned intention for an asset write-down, although (IMO) the need for such doesn't appear necessary.

GOOD ON YOU DUSTINE FOR YOUR UPDATE, which has possibly influenced trading activity today.

DYOR