lending a loss maker for fsa

Lending a loss maker so far for Fox Symes
20 November 2007 6:50am

Fox Symes is the leading debt administrator in Australia and now administers about 47 per cent of all debt agreements nationally. The number of debt agreements registered last year nationwide climbed to more than 6500.

Revenue for the listed company Fox Symes and Associates increased 55 per cent to $33.9 million in the 2007 financial year. Lending activities provided $4.5 million of that revenue, up from $300,000 in 2006 with $27.9 million coming from personal and corporate debt administration services.

The lending business has been loss making so far for Fox Symes, costing the company $400,000 over the last two financial years. The debt administration business continues to grow strongly, delivering a profit after tax of $6.6 million in 2007. The combined company posted a profit after tax of $6.5 million, up 152 per cent on 2006’s $2.5 million result.

The Fox Symes share price has fallen from around $1 after the April announcement of the Westpac mortgage funding facility to around sixty cents now. Maher says the main reason for that has been investor concerns about the company’s position in the non-conforming lending market.

“We need to be more proactive in communicating to investors about our business,� said Maher “We have not been active with investor roadshows or broker briefings.�

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