Consumer finance company FlexiGroup predicts its profit will grow in the next year as more people turn to solar power to avoid high energy prices.
FlexiGroup recorded net profit growth of 18 per cent to $72.1 million in the year to June 30, 2013, up from $61.3 million a year earlier.
It predicts profit will grow by 17 to 19 per cent, to between $84 million and $86 million, in the 2013/14 financial year.
The group, whose products include business and individual equipment rental, lay-by plans and credit card finance, said a hike in government solar subsidies had helped its payment plan business Certegy.
Certegy's Ezi-Pay system allows customers to pay off their solar panels and other energy efficient systems over a period of time.
"Certegy seized the volume opportunity induced by high government solar subsidies to grow strongly in the first half of (fiscal) 2013," said FlexiGroup chief executive officer Tarek Robbiati.
State governments have since scaled back their subsidies, but Mr Robbiati said this would not adversely affect the company.
"We see continued contribution of solar volumes as energy costs rise for customers and businesses and the industry recovers from the significant reduction of government subsidies."
He said Certegy had prepared for the subsidy cuts by funnelling customers to a new VIP program, which delivered $84 million in new non-solar revenue.
FlexiGroup's sunny outlook is also buoyed by its increased involvement in the $45 billion credit card market.
"The acquisition of Once Credit and its integration with Lombard provide FlexiGroup with the critical scale it requires to compete effectively in the interest-free card market," Mr Robbiati said.
At 1235 AEST, FlexiGroup shares were up two cents, or 0.43 per cent, to $4.66.
