off the radar opportunity, page-4

The competitive environment for Flexirent has signficantly reduced due to the GFC

- brokers and small players (circa $20m to $30m per annum)have generally ceased trading due to lack of access to funding. I have former employees who have left the industry over the last 12 months (and a couple that have gone to FXL!) The catalyst for this was Societe Generale pulling out of funding lease receivables in the Australian market (they had be doing this for more than 20 years) which essentially removed access to funding of more than $500m pa for small and independent leasing players
- CIT was a big player and this business was sold off to BOQ. FXL poached their corporate team to take advantage of the bigger ticket market.
- The Banks have pulled back signficantly.
- Allco acquired 4 leasing businesses between 2003 - 2005 and formed Alleasing. There was later a distressed sale to CHAMP Private Equity and the business continues to run in a capital starved way.

The main like for like competitor is Thinksmart - TSM.asx(Rentsmart is the operating brand) which is a copy of FXL. An OK business but a distant number 2 - I never came across them in my professional career. They have looked overseas for growth (I believe to avoid Flexirent). When Flexirent announces their result compare the PE to TSM. Flexirent is much more proven and low risk. I genuinely believe they are a cheap buy sub $1.50.