Spike in impairments at FlexiGroup
The disruption that marred the 2014/15 results of finance company FlexiGroup was again evident in its results for the six months to December.Business volumes in two of the company's business units - small business leasing and enterprise leasing - were well down on the previous corresponding period.Last year, FlexiGroup chair Andrew Abercrombie said significant changes to the company's technology platform had speeded up processes and helped reduce costs, but had also involved some disruption. Small business leasing and enterprise leasing had been badly affected.Yesterday the company pointed out that volumes in the two businesses had stabilised half-on-half.The company was also hit by higher impairment losses, which were up 24 per cent to A$24.9 million. It reported higher impairments in all its business units but most particularly in the No Interest Ever (Certegy) division.The company reported an eight per cent increase in net profit to $41.4 million. After adjusting for amortisation of acquired intangibles and acquisition costs, cash profit was up four per cent to $44.3 million.New Zealand made a strong contribution, largely due to the contribution of TRL Leasing, which was acquired last year.The company is continuing to grow in NZ. In October it acquired New Zealand's Fisher & Paykel Finance, which has added 430,000 customers and NZ$662 million of receivables.