If things have been going along as the below report infers I suggest that for loyal holders of AFC as the top 20 have around 80% it has a light t/o but my inquiry to the office suggests some good news is due. So place AFC on close watch. I bought on fri for 46c.
Perth-based insurance premium funder Alliance Finance Corporation Limited (ASX: AFC) is tracking well ahead of its forecast business growth following its listing on the ASX in June.
"We are ahead of budget for July and August which have been our best months on record. The company is on track to write loans of $130 million for the new financial year, up from $80 million in 2001-2002. Our first two months have delivered some 25% of the full year's lending budget," Martin Kane, Managing Director and founder of Alliance Finance, said.
"The increased capital capacity and market profile delivered by the IPO is giving us a look at business we haven't been able to access previously.
"There has been no material change in operating costs, delivering the benefits of scalability we had anticipated at the time of our IPO. Historically, Alliance's growth has been constrained by access to capital which is no longer an issue."
Mr Kane issued the market update when announcing Alliance Finance's maiden profit after its $8 million IPO closed over subscribed.
The company's 2001-2002 revenues rose 50% to $5.4 million, profit before tax increased 144% to $1.54 million and profit after tax was up 156% to $1.04 million ($27,000 below forecast).
The results were substantially in line with Prospectus forecasts.
"Alliance is now well positioned to grow its distribution and agency businesses into the larger markets in the eastern states," Mr Kane said.
"We have identified new opportunities and contacts to act as a distribution channel for our products in all of the mainland States which will begin the growth of our business nationally. We are considering all our options and will progress this area when we feel the time is right."
Since its establishment in 1991, Alliance has developed a track record of strong year-on-year growth driven by the annuity-type earnings of its premium funding product. Dramatic events such as the September 11 disaster and the collapse of HIH locally have seen premiums rise steeply. Consequently, companies are increasingly looking to insurance premium funders as a source of off-balance sheet financing.
Australia's insurance premium funding market is estimated to be worth between $1.7 billion and $2.2 billion in loans written annually. Alliance expects this market to increase by at least 20% per annum over the next two years.
Alliance currently has about 3,000 active client accounts, mainly delivered through a network of over 60 insurance brokers.
Further information:
Martin Kane Managing Director, Alliance Finance Corporation Ltd Tel: (08) 9420 1200 Mob: 0418 943 930
