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Australia’s largest asset finance aggregation group has praised its asset finance and novated leasing brokers for helping drive growth.
Asset finance group COG Financial Services Limited has revealed that revenues rose 7 per cent year over year to $251 million in the half year ending 31 December 2024 (1H25).
The group – which covers broking and aggregation businesses (such as COG Aggregation and Platform Finance), novated leasing (including CarSelect), asset management and lending (including Westlawn), and financial advisory (such as Centrepoint Alliance) – praised the contributions of its broker network, particularly in asset finance and novated leasing, for driving the group’s half-year performance.
Assets under finance grew 13 per cent to $967 million from a year earlier while the number of lender accreditations across the group reached a record 2,983, the highest number ever achieved.
Broker numbers have also been quickly rising. It now has 1,766 brokers aggregating through it across 792 brokerages. In the six-month period, asset finance aggregator business Platform Finance onboarded 679 new brokers, up 75 per cent on the previous corresponding period.
The aggregator formed a partnership arrangement with mortgage aggregator Specialist Finance Group in June 2024, whereby SFG brokers can aggregate through Platform Finance for their asset and personal finance needs.
Head of COG Aggregation, Mark Rayson, also said that the rise in broker numbers underscored the company’s commitment to expanding its network (it bought several broking companies, including Cap Coast Home Loans [for $1 million] in July 2024) and strengthening relationships with industry partners.
Other strategic acquisitions during the year include the salary packaging business Community Salary Packaging through its Paywise Pty Ltd subsidiary for $2.1 million.
Settlements and originations
The finance broking and aggregation companies continued to write a large amount of business, despite the end of the larger instant asset tax write-off incentive (which finished in June 2023).
Net assets financed finished 1H25 at $4.2 billion, slipping slightly from the record $4.3 billion a year earlier (COG financed record volumes in FY24).
New leases and loans written in the half totalled $62.2 million, down from $71.2 million in 1H24.
However, settlements through COG’s Platform Finance lender panel rose 4 per cent while the average deal size decreased by 1.7 per cent, suggesting that clients are increasingly seeking more economical options, COG said.
Platform Finance saw a 3 per cent rise in commercial loans, 5 per cent growth in personal loans, and a 10 per cent increase in lenders used.
Commenting on what contributed to the revenue rise, COG said the $17.1 million jump included organic growth from its novated lease segment, up $11.9 million, and an increased contribution from asset management and lending activities, up $8.6 million.
Looking ahead, Rayson was upbeat on COG Aggregation’s prospects.
“With a strong balance sheet and unrestricted cash of $83.7 million as of December 31, 2024, we are well-positioned to drive further earnings growth, both organically and by pursuing targeted acquisitions,” he said.
COG Aggregation’s tech push
Speaking to The Adviser on how COG Aggregation was investing in tech, Rayson said that the company had “launched the most comprehensive asset finance quoting tool on the market”, incorporating novated leasing and support for structured and irregular payment patterns.
Rayson said that the aggregator had expanded its internal development team with four additional developers and a dedicated cyber security manager.
Commenting on future plans to strengthen tech for brokers, he said: “We continue to enhance lender and product selection tools, along with a range of APIs for seamless integration with lender systems.
“Additional initiatives include the development of lead management tools and user workflows, designed to support asset finance brokerages of all sizes and structures.”
Rayson said that the company planned to continue its “heavy investment” in both its cyber security and the COG Connect broker platform.
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