How COG’s Strategic Acquisitions Fueled a 23% Profit Surge in FY2025

Financial Highlights and Profit Growth

COG Financial Services Limited has delivered a solid financial performance for the year ended 30 June 2025, reporting a 23% increase in net profit after tax (NPAT) to $18.8 million. Revenue from continuing operations edged up 1.5% to $367.7 million, while earnings per share rose to 9.41 cents, up from 6.67 cents the previous year. This growth was achieved despite a slight decline in the Finance Broking & Aggregation segment, reflecting the company’s strategic focus on higher-growth areas.

Segment Performance and Strategic Acquisitions

The Novated Leasing segment was a standout performer, with revenues increasing 22% to $58.8 million, boosted by the acquisition of Community Salary Packaging and favourable tax incentives for electric vehicles. Asset Management & Lending also grew revenues by 6%, supported by organic growth in Equity-One Mortgage Fund and the acquisition of AAA Finance. Conversely, the Finance Broking & Aggregation segment saw a 4% revenue decline, impacted by tighter commission rates and lower volumes, though it remains a key part of COG’s diversified earnings base.

During the year, COG completed the divestment of its holdings in Earlypay Limited and Centrepoint Alliance Limited, simplifying its operating environment. The Group also expanded its footprint through acquisitions including Community Salary Packaging, Cap Coast Home Loans, and a controlling interest in AAA Finance, aligning with its strategy to build broking capabilities and novated leasing services.

Balance Sheet Strength and Dividend Policy

COG maintains a robust balance sheet with net assets of $206.5 million, slightly up from $203.6 million in the prior year. The company declared a fully franked final dividend of 3.0 cents per share, down from 4.4 cents in FY2024, reflecting a payout ratio of 50.6% of underlying NPATA. The Dividend Reinvestment Plan remains suspended for FY2025 dividends, signaling a cautious approach to capital management amid ongoing investments and acquisitions.

Board Changes and Leadership

The year saw significant changes at the board level, with Antony Robinson appointed as Chairman and John Dwyer joining as a Non-Executive Director in April 2025. Both bring extensive experience in financial services and insurance broking, supporting COG’s strategic direction. The board expressed confidence in the company’s leadership team, led by CEO Andrew Bennett, and the positive outlook for continued growth in broking and novated leasing.

Outlook and Strategic Focus

COG’s strategy remains focused on expanding its broking capabilities and novated leasing business, leveraging acquisitions and organic growth. The company continues to invest in technology and human capital to support these segments. While credit risk provisions have increased slightly due to economic pressures on SMEs, the Group’s diversified earnings and strong capital position provide resilience. Investors will be watching how recent acquisitions integrate and contribute to earnings in the coming years.