it's just the beginning for Cirralto!, page-105

Flexi's figures look shall we say more ' Rubbery ' to me though. Especially when considering it's Cash Profits were down YoY 61.3% coming off Statutory Profit being down 65.3% .......and ONLY a fall in Volumes ( turnover ) of 2.9% from $2.566 Billion in FY 19 to $2.483 Billion in FY 20

At at glance of their Operating situations , it appears that their ' Top Line ' Interest Income Gain of $7.4 million together with their $11.3 million reduction in Interest Expense goes some ways to offsetting their LOSS of $29.7 or 25 % reduction of ' Other Income ' which as they claim is virtually ' Solely ' on account of asimpler fee structure per customer in hummversus the old Certegy product, lower income inCommercial and Leasing and reduced annual feesfrom legacy products in AU Cards combining with the . Cost of sales expenses included in Other portfolio income having increased alongside and from higher transaction volumes and credit bureau costs,reflecting directly from the growth in customer applications.

And then there is the Operating Expenses which on the ' surface ' look to be more or less steady with only an increase of $2.2 million in FY 20 verses FY 19. However when you ' Add Back ' the $2.8 million they claim they received in ' Job Keeper ' support - this would make the ' Real ' increase of $5 million increase off the back of basically an $18.7 or 7.4% favorable movement in the combined ' Interest Income and Interest Expense ' lines and a 2.9 % drop in Volumes.......

And looking at the ' Non Cash ' depreciation and amortization charges which were up by ONLY $4.3 million - that leaves pretty much the SINGLE largest difference between FY 20 and FY 19 results as being the $57.7 million increase in the category of " Receivables and customer loan impairment expenses " which rounds out their $66 million or 72.8% drop in Profit before income tax from $90.7 million to only $21.4 million.....being mainly as result of the $45.4 million higher macro overlay provision ( another Non Cash item ) of $45.4mfor projected higher Net losses and predominatelydue to COVID-19. And all of this on a reported 10 bps or 4.1% drop Net Losses to in YoY ( ANR ) - Average Net Receivables.

What I would really like to know though , is how is it that a Company ......a Half Billion Dollar Company who reports 30% increase in Customers , and claims that their Volume numbers on ' continuing ' products basis are up 17.2% YoY.... which more than attributes to their corresponding Receivables growth of 15.8% .... be eligible for ' Job Keeper ' in the first place..... ....

The mind totally boggles how these companies are seemingly ' ripping off ' the Australian Tax Payer at this very terrible time for Others while these ' Parasites ' actually gain from it. And by their own figures ....most of their YoY ' Reductions ' to Profit before tax as explained above are ALL Non-Cash ' Accounting ' entries driven by increases in Provision's and Amortisation .

There is no ' Real ' drop of 30% in Turnover here folks - which as I understand would be required in qualifying you to receive " Job Keeper " handouts. All they speak about it seems is GROWTH !! What an absolute Rort. And how can they in good conscience even put their hand up for Job Keeper when they make sentences like this in their recent Annual Report :-

" seen as COVID-19 accelerates the shift to onlineshopping. As the only BNPL product that canprocess eCommerce transactions up to $10,000,humm is well placed to capture this growingcustomer base of online shoppers.

In March 2020, we made the prudent decisionto withdraw volume guidance and the Return onEquity target for FY20. In addition, key pre-emptiveadjustments were made to credit risk.

We continue to monitor our portfolio andthe economy to adjust how we view creditrisk accordingly

WhileFull Year Cash NPAT was lower than FY19, thisis largely attributable to the forward lookingprovision relating to the projected impact ofeconomic conditions due to COVID-19.

ROE of 4.9% decreased 740 basis pointscompared to 30 June 2019 predominately drivenby the decrease in Cash NPAT during FY20.Most of this decline was attributable to theCOVID-19 macro overlay provision increase. ( Which is NON CASH .... ) "

So I would ask again ......where is the 30% reduction to the FXL 'S Business Folk's ....which I thought was meant to be a significant ' Qualifying ' aspect to receiving ' Job Keeper' . At least our Management has put themselves out there by declaring that they are NO LONGER eligible to receive the ' Job Keeper ' on account of our Growth exceeding what I previously thought to be hard and fast rules set out by our Government.

Anyway - something to be proud of if you are a CRO investor. Meanwhile there are others sitting on $2.8 million of ' ill gotten ' funds which in my opinion should be returned to the Australian Government poste haste.......