+ + data and comments + +

AFC- Alliance Finance Corporation:
http://www.alliance.net.au/html/

BigChart:
http://bigcharts.marketwatch.com/javachart/javachart.asp?symb=AU%3AAFC&time=&freq=


1. HISTORY
Listing: 4 July, 2002. 16 mill shares were allocated. Total shareholding: 37.5 mill shares of which 21.5 mill. belonged to then existing shareholders.

2003 Annual Report: 20 largest holders: 77.9% and the CEO, Martin Kane holds 45.12%.

Forecasted June 30, 2003 profit: $2.519 mill. Actual $1.33 mill.

Profit for the 6 months to 31 Dec, 2003: $ 1.23 mill (+ 53%) or 3.3 cents/share. Div: 1.5 cents, fully franked:

"For the first time the company has been in a position to fully capitalise on all the infrastructure and processes which have been put in place since listing on the ASX in June 2002,” Mr Martin Kane, Managing Director of Alliance Finance, said.

In other business growth initiatives the Perth-based company also: " Established offices in Sydney, Melbourne and Brisbane to increase sales and marketing resources in the larger eastern states markets – an important investment in future growth".

Comment: In 2003/2004, Cash has been spent in the expansion of AFC and on Infrastructure/ Information Systems.


2. SOURCES AND DETAILS.
2.1 The Prospectus: Martin Kane is the founder and principal shareholder of Alliance. He has spent 35 years in the finance industry and was State Manager – Western Australia, Consumer and Dealer Financial Services, for Custom Credit.

AFC is active in:
(a) "Alliance has played an important role in the provision of insurance premium funding (IPF) facilities in both metropolitan and regional areas of Western Australia for over 10 years. The ompany’s activities are now expanding significantly beyond Western Australia.

"Credit Risk Management: Alliance’s IPF product delivers a very acceptable and manageable credit risk outcome: • Many insurance policies are cancellable if the customer defaults giving Alliance access to premium rebate from the insurer for the unexpired term of the cancelled insurance cover.."

b) "Equipment Leasing Equipment leasing is generic to the finance industry. It generally refers to either an operating lease or a finance lease".

2.2: Annual Report 2003: "During the year, we replaced all our financial and operational software and upgraded or replaced our computer hardware. This initiative is already showing exceptional results..."

IBNA Limited (‘IBNA’) "As previously reported, Alliance has entered into a joint venture agreement with IBNA, a cluster buying group of insurance brokers. With over 80 outlets nationally, IBNA is represented in every state and regional centre throughout Australia".

"Insurance premiums are expected to rise again this year, but not to same extent as last year. In fact, in Western Australia there has been a decrease in some workers’ compensation premiums as specific industries report lower claims levels".

"I am delighted to announce that Alliance is now represented along Australia’s eastern seaboard, and I welcome on board our new staff in Queensland, New South Wales and Victoria. Business for the Company now emanates from every state, and we must move strategically to protect and build on that business base".

2.3: Half yearly Report covering 6 months to Dec. 31, 2003: Date 26 Febr.:Reports bumper first half growth:

http://stocknessmonster.com/news-item?S=AFC&E=ASX&N=256172

Extracts:
"Significantly, business levels have almost doubled without any increase in the number of processing staff or facilities – proving the scalability of the business. We anticipate that our existing resources can comfortably accommodate further growth in new business levels".

"However, Mr Kane stressed that Alliance Finance’s business is closely linked to the seasonal insurance business cycle in Australia, with new lending traditionally stronger in the first half. So levels of new lending reported for the first half were unlikely to be replicated in the January-June 2004 period".

"Business Growth Initiatives: In other business growth initiatives the Perth-based company also:

• Established offices in Sydney, Melbourne and Brisbane to increase sales and marketing resources in the larger eastern states markets – an important investment in future growth.

• Established a professional fee funding product – for accountants, lawyers and other professional service providers. This has been well accepted and is showing impressive growth in take-up rates.

• Commissioned an Internet-based funding quotation and reporting service. This is to be followed by a 2004 calendar year rollout of the latest version of the company’s technology which will allow insurance brokers remote access to quotation software and
account data on a 24/7 basis.

• Completed a scanning and imaging system for all loan documentation.

• Further increased and refined funding facilities from the company’s banks".


3. OTHER.
21 Oct. 2002: Doubles Broker Network&Gains National Coverage with IBNA JV:

http://stocknessmonster.com/news-item?S=AFC&E=ASX&N=225315

http://stocknessmonster.com/news-item?S=AFC&E=ASX&N=230335


Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.