COG Financial Services’ push into lending and ongoing participation in the consolidation of the commercial finance broking market paid off for the company in the year to June, with solid earnings growth in both its business divisions.

COG released unaudited details of its 2021/22 accounts, reporting a 32.2 per cent increase in broking and aggregation earnings, and 17.1 per cent increase in lending and funds management earnings.

Total net profit after tax and before amortisation of acquired intangibles and write-offs of intangibles was A$25.1 million, a 29 per cent increase on the previous year.

COG chief executive Andrew Bennett said in a statement that activity has remained strong in the face of higher funding costs.

COG maintained a cracking pace in the M&A market during the 2021/22 year. In February it acquired funds management business Equity-One Mortgage Fund Ltd, through its lending subsidiary Westlawn Finance.

Westlawn paid $24 million in cash for 70 per cent of Equity-One, which operates a contributory mortgage scheme and has around $350 million of funds under management.

Last October, it acquired the 30 per cent of broker PCG that it does not already own.

It also acquired an 80 per cent interest in Access Capital, an asset finance broker in South Australia and the Northern Territory.

It established a $31 million acquisition finance facility with a major bank. It is a revolving facility with a five-year term.

It has continued its M&A activity in the new financial year. Earlier this month, it acquired Club Transport Finance, which trades as Chevron Equipment Finance. In an all-cash deal worth A$7 million, COG will hold 70 per cent of Chevron, with the company’s founder retaining 30 per cent. COG has an option over the 30 per cent balance.

Chevron’s client base is predominantly SMEs operating in the transport and earthmoving sectors.