Financial services company FlexiGroup has earmarked a period of slower profit growth as it consolidates after a busy year of mergers and acquisitions.
The group, which aspires to become an ASX100 company, recorded a $57.6 million net profit for the 2013/14 financial year, down 13 per cent as its bottom line was heavily impacted by a number of one-off costs.
FlexiGroup shelled out around $38 million acquiring several technology leasing and financing companies during the year.
Excluding one-off costs, its cash profit rose 18 per cent to $85 million.
Chief executive Tarek Robbiati said FlexiGroup would continue to increase its cash profit, as its range of products expands, albeit at a slower rate.
Flexigroup expects its cash profit to rise by about six per cent to come in between $90 million and $91 million in 2014/15.
"There is an exciting world ahead of us," Mr Robbiati said on Thursday.
"Our M&A strategy is working."
The group's biggest earnings were from its Certegy retail payments processing business, which overtook its shrinking consumer and small-to-medium leasing business.
Contracts with Australian retailers, including Dick Smith and Harvey Norman, to provide shoppers payment plans for consumer goods, pushed Certegy's cash profit up 17 per cent to $32.3 million.
Flexigroup's interest free credit cards business tripled its cash profit to $11 million, with more than 20,000 new customers signing up.
The company said was aiming to expand its customer base locally and in New Zealand.
"We will drive development through our core business and where appropriate, through acquisitions," Mr Robbiati said.
FlexiGroup shares gained eight cents to $3.85.
FLEXIGROUP BOOSTS CASH PROFIT
* Full year net profit of $57.6m, down 13 pct from $65.8m in 2012/13
* Cash profit of $85m, up 18 pct from $72.1m
* Final dividend of 8.5 cents a share up 13pct from 7.5 cents
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