COG Financial's Follow-the-Management Bet Delivers Real Growth

Former PSC Insurance executives joining the board have driven acquisition-led growth, even as broader SME lending sentiment concerns weighed on the share price.

30 Sep 2026 · 3 min read

COG Financial Services, Australia's largest aggregator of finance brokers and equipment leasing businesses, delivered a genuine follow-the-management story after former PSC Insurance executives joined the board, driving strong acquisition-led growth through EasiFleet and Fleet Network before broader concerns about SME lending exposure and credit quality dragged the stock down amid a soft patch for financial services stocks.

A management team with a proven track record

Wilson Asset Management rated the stock a buy, describing it as a follow-the-management story, with executives from PSC Insurance, who took that business from a dollar in 2015 to the equivalent of $8 last year when it was divested to Ardonagh, now joining COG's board, seeing really strong opportunities for the business to continue growing earnings.

This one's a buy for us and it's a follow management story. The guys from PSC Insurance that took that business effectively from 2015 at a dollar to the equivalent of $8 last year when they divested the business to Ardonagh. So, they've come into this business, joined the board.

— Wilson Asset Management, Article, November 2025

Insider buying and index inclusion validate the story

Glennon Small Companies said the stock jumped 31.57 percent in September, driven by several positive factors, with a key catalyst being insider buying after director John Dwyer purchased 250,000 shares at around $1.88 each, signalling confidence to the market, alongside a boost from being added to the S&P/ASX Emerging Companies Index on 21 September.

Acquisitions expand government contract exposure

Sandon Capital said COG announced the acquisition of salary packaging and novated leasing business EasiFleet for $40 million through its Paywise subsidiary, providing contracts across Western Australia, Northern Territory, Tasmania, Queensland and ACT governments, and strongly positioning Paywise for upcoming NSW and Victorian government tenders. Naos Asset Management said COG maintained strong momentum in the first quarter of FY26, completing two acquisitions, with EasiFleet funded using cash reserves and an existing debt facility, supported by capital recycled from the sale of non-core minority stakes in Centrepoint Alliance and Earlypay.

A soft patch for SME lending sentiment

Glennon Small Companies said the stock weakened as investor sentiment toward asset-finance and SME lending exposures softened amid concerns about credit quality and economic slowing, with the market adopting a more cautious stance toward lenders exposed to small business conditions, even as the company continued benefiting from scale advantages and diversified earnings streams. The fund said the stock detracted further in February amid broader weakness across financial services and lending-related companies, despite COG continuing to execute its strategy of building a diversified finance platform.

COG Financial Services weakened as investor sentiment toward asset-finance and SME lending exposures softened amid concerns about credit quality and economic slowing.

— Glennon Small Companies, Monthly Report, January 2026

Continued strong execution, backed by an increased Fleet Network stake

Sandon Capital said COG continues executing sensibly, compounding earnings and allocating capital with discipline, pointing to the EasiFleet acquisition and an increase in Fleet Network ownership to 92.4 percent as a sensible, low-risk use of capital, attributing the roughly 14 percent share price decline over the period to broader sentiment rather than fundamentals. LSN Capital Partners said COG delivered 28 percent EBITDA growth and 27 percent EPS growth in FY26, while conservatively guiding to a further 10 percent increase in EBITDA in FY27, led by strong growth in Novated Leasing and Salary Packaging, where settlements rose 66 percent.

COG Financial Services delivered 28% EBITDA growth and 27% EPS growth in FY26, while conservatively guiding to a further 10% increase in EBITDA in FY27. This was led by strong growth in Novated Leasing and Salary Packaging, where settlements rose by 66%.

— LSN Capital Partners, Monthly Report, August 2026

What fund managers say they are watching next is delivery on the conservative 10 percent FY27 EBITDA growth guidance, continued Novated Leasing and Salary Packaging settlement growth, success in the upcoming NSW and Victorian government tenders following the EasiFleet acquisition, and whether SME lending sentiment recovers from its cautious stance.