Login
ISCOVER
The debtor finance company has reported a boost in new business from brokers in the first half of the 2018 financial year, with net profits growing by 10 per cent.
In the first half of the 2018 financial year (1H18), Scottish Pacific has reported a net profit after tax (NPAT) of $16.5 million, up by 10 per cent from the previous corresponding period.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The group’s debtor finance loan book has grown by 10.4 per cent, with the growth attributed to a rise in new business and a close to 20 per cent average lend per customer.
Speaking to The Adviser, CEO of Scottish Pacific Peter Langham also noted that the number of deals generated through the broker channel has continued to increase.
“The new business we won from brokers in the first half is actually higher than we had in the previous corresponding period,” the CEO said.
“Consistently around about 30–40 per cent of new business comes from the broker channel. It’s never below 30 per cent and can sometimes be over 40 per cent.
“It’s been around those levels for a while, [and] we certainly attract more business from our direct channels over the years, but the number of deals we get from brokers increases every year.”
Moreover, Mr Langham stated that Scottish Pacific aims to further drive growth in the 2H18 by broadening the availability of its specialised products.
“[The results] are very pleasing, but we believe there’s potential for more upside going forward. I think it’s pleasing but not necessarily unexpected.
“We can certainly improve our penetration of the product into the market by the further expansion of our existing specialised products to assist us in winning more deals.”
Further, the group reported a net revenue of $54.3 million, up by 8.8 per cent, and the CEO expects revenue growth to be mirrored in 2H18.
“With a strong pipeline of new opportunities across debtor finance and specialised finance, we anticipate net revenue growth in 2H18 at least consistent with that of H1.
“With further improvements in cost controls, the group reaffirms its FY18 guidance of high single-digit PBIT growth.”
[Related: Small business increasingly accessing alternative finance: OECD]
