Business Description:
FlexiGroup Limited (FXL) is a provider of vendor and retail point-of-sale finance and telecommunication services in Australia, New Zealand and Ireland. FXL provides credit facilities and other financing methods to customers acquiring goods or services at the time of their initial purchase of these goods and services. FXL operates four main businesses, namely, Leasing Retail, Leasing Vendor & Commercial, Telecommunications, and Interest Free Loan.

Strategy Analysis:
The broad strategy is to diversify the product offering to both foster growth and reduce reliance on individual products and partnerships. This represents a focus to segment the market across their product range. We are wary this strategy may just be an excuse to grow the business by any means necessary. 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. FlexiGroup reported NPAT down 12.1% to $51.76m for the year ended 30 June 2011. This decrease is the result of the recognition of a one-off tax credit in the 2010 year. Revenues from ordinary activities were $222.98m, up 9.2% from last year. Diluted EPS was 18.8 cents compared to 23.8 cents last year. Net operating cash flow was $87.22m compared to $53.38m last year. The final dividend declared was 5.5 cents, taking the full year dividend to 10.5 cents compared with 7.5 cents last year.