Nothing On Sell Side, page-3

In November 2013, at the AGM the board announced that they would start trialling car loans. After that AGM, Tim told me that it was all about being prudent and being selective with whom they borrowed to. They needed to demonstrate to Westpac that their business model for car loan lending would work. As at 30 June 2014, they had a loan pool of $1.1M. One year later, $5.9M.

What they have not highlighted in their commentary is that there are no car loans in default. Not one. The average loan is $24,000 so you have approximately 240 loans all compliant. That blows me away. I am sure Westpac would be impressed.

They have just started advertising their car loans on the net. They have confidence to grow. Expect massive growth.

I like this bill paying product. Potential for 500 new clients a month. Each paying 99 cents a day. Fully automated system. They already cop over 6000 calls a month from potential clients. No new advertising required to build the base. There is a market for these types of products.

They claim that they can average 10 per cent revenue growth per annum over the next 5 years. The last 5 years they have averaged 6.5 per cent revenue growth and 14.4 per cent profit per annum. Imagine at 10 per cent revenue growth. FSA is perfectly positioned for growth. I can understand why there are no sellers trying to exit at the moment. This one is a keeper.