COG Financial Services (ASX:COG) has released its unaudited results for the first quarter of FY25. The company's underlying net profit after tax and amortization (NPATA) fell to $5.2 million from $6.2 million in the previous year. This decline is mainly due to reduced contributions from its TL Commercial business. However, COG is focusing on other segments like Lending to drive growth.
COG Financial Services reported a decrease in NPATA for Q1 FY25, primarily due to lower earnings from TL Commercial. To counter this, COG is investing in segments such as Novated Leasing and Asset Management & Lending, which have shown potential for growth. The company aims to leverage opportunities in these areas, especially with tax incentives boosting the Novated Leasing segment. As Australia's largest asset finance group, COG sees significant growth potential through consolidation and organic expansion. The strategic focus is now on reallocating resources to enhance profitability and market share.
The shift away from TL Commercial is a strategic move to strengthen our position in other high-margin areas. We are optimistic about the growth potential in our Lending business, driven by an increase in higher-margin assets.