Pretty much follow what thought it should be doing. Some...

Pretty much follow what thought it should be doing. Some positive surprises are

1. Stronger growth in autoloan business. Loan book has grown from 10 mil Dec 2016 to 20 mil Jun 2017. Last year it took them 9 months to get to 10 mil and now it took 6 months. It is a game of scale and managing risk. If run rate maintained, the loan book should grow to 30 mil by end of this year. By my calculation, this half it is already profitable. I would like to see them up the underwriting pace further whilst maintaining risk and compliance control. It should be as good as what Money3 has.

2. MACC is growing faster than I thought. This will cushion SACC loan book shrinkage

Some negatives:

1. No commentary around law suit. In my book, silence is admission or lack of confidence.

2. No significant cost cutting that I have hoped for.

Albeit the lawsuit, there is much more upside than downside from here. It is quite cheap at this price.