FlexiGroup's profit rises 80%

Finance and telecommunication services provider FlexiGroup Ltd says it is poised to take advantage of under-serviced parts of the market, after reporting a strong rise in profit.

Net profit rose 80 per cent to $58.9 million for the year ended June 30, compared with previous corresponding 12 months after the company acquired and launched successful new products.

"Diversification of the group's product range continued with growth in the interest-free and mobile broadband businesses, along with the new Vendor Finance business in the year," the company said in a statement on Tuesday.

Chief executive John DeLano said the company had delivered strong profit and growth in a challenging market.

He said the company's interest-free acquisition, Certegy, had been well executed and its mobile broadband business BLiNK had 54,000 monthly subscribers.

"FlexiGroup's strategy of product diversification by starting or acquiring good credit quality businesses is on track," he said.

"FlexiGroup emerges from the GFC (global financial crisis) a stronger, more diversified and more profitable business and is now poised to take advantage of parts of the market that have been under-serviced as a result of the GFC.

"We continue to see the benefits of our risk-mitigation strategies put in place in the early stages of the global financial crisis in 2007 and from our robust collection process."

The company also received a refund from the Australian Taxation Office of $24.7 million.

Revenue rose 11 per cent to $204.2 million.

The company said it will pay a final dividend of 4.5 cents per share, fully franked, bringing the total dividend for the period to 7.5 cents.

FlexiGroup shares were up 7.5 cents at $1.39 at 1539 AEST.

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