Firstfolio to Continue Acquisition Strategy
Firstfolio has seen revenues surge on the back of its acquisition strategy, and plans to continue to seek out acquisition targets.
In its annual results, the company has reported a 36% rise in revenues for the year. It also saw a 42% increase in profit after tax. However, acquisitions also saw the company increase its debt levels to fund its purchase of Club Financial Services and Apple Home Loans, resulting in increased interest charges to $3.3m.
Firstfolio CEO Mark Forsyth said the company would continue its acquisition strategy in 2012, as well as launch further white-labeled programs following its acquisition of non-bank lender Calibre Financial Services.
Forsyth pointed to difficult operating circumstances throughout 2011, but said the company saw business volumes rebound in the latter part of the year.
"The second half of the financial year saw housing finance numbers continue to soften, consumer sentiment weaken and heightened anxiety around the direction of interest rates. These market factors together with the Queensland flood had an impact on origination volumes across the sector. Firstfolio was similarly affected, but volumes began to pick up significantly again in May 2011, with two of our largest settlement months being June and July 2011, and follows completion of the Club acquisition and re-alignment of the business against prevailing market conditions," he remarked.