Point of sale financer FlexiGroup is counting on lower yielding, lower margin business from its newly acquired Ezi-Pay operation to drive earnings growth over the next year. The group has had to tighten credit criteria on its core Flexirent product that primarily finances computer and office equipment leases for small businesses.The company reported a $32.3 million net profit after tax for financial year 2008, ten per cent above the $29.3 pro forma NPAT for FY07, on a 19 per cent revenue increase to $167 million. Bad and doubtful debts increased $9 million (net of recoveries) to $22 million. Of the increase, $5.9 million is attributable to personal loans (with this portfolio previously advised to be wound down) and an increase in allowance for loss, with $3.1 million due to a shift in the mix of lease receivables.Committed funding facilities currently stand at $759 million, with outstanding borrowings $521 million, with the undrawn facilities expected to be sufficient for new lease volumes through to January 2010.The acquisition of Ezi-Pay (by buying its owner, Certegy Australia) is expected to increase annual assets financed by more than $250 million a year, lifting customer contracts originated from around 100,000 to over 250,000. The firm will also pick up a customer database of 450,000 names.FlexiGroup clarified yesterday that it expected Ezi-Pay to produce a profit in 2009/10 of around $8 million, on annual new business (as of mid 2008) of $250 million. By contrast the established FlexiGroup new business flow of $293 million produced a profit of $32 million in the last financial year.The Ezi-Pay acquisition will dilute earnings per share in the first year.Future Ezi-Pay receivables will be funded by two of FlexiGroup's existing funders with two-year committed facilities.The market was a bit unsure about the result, pushing FlexiGroup shares down 2.5 cents to 51 cents, on volume of just under one million shares. Twelve month highs are $2.80 and lows 0.385 cents.