A wave of acquisitions entails ensuring harmony between old and new staff.

IT is appropriate that Firstfolio Limited has the word first in its title, as it is determined to be a leader in its field.

In just five years the firm has undergone a name change and acquired several other companies.

The financial services company, previously known as Affiance, is one of the fastest growing ASX-listed independent financial services companies, with more than $20 billion in loans under management.

Lawfund, Capital First, LSA, eChoice, Domain, First Chartered Capital, LeaseChoice, Apple Home Loans and Club FS have all been acquired since 2006.

But it is not only in the field of acquisitions that the company is moving quickly. Within its  own corridors Firstfolio has been working strategically and intelligently to engage employees in a direct and a meaningful way.

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Australian HR Awards 2011

Australian Banking & Finance, December 2011

Mortgage provider and financial services company Firstfolio, has announced the completion of its 100 per cent acquisition of non-bank mortgage lender, Calibre Financial Services.

The $13 million dollar deal, funded by a combination of cash and long-term debt from the Commonwealth Bank will enable Firstfolio to grow into the non-bank lending space, leveraging Calibre’s proprietary lending and trust management platform, while further diversifying Firstfolio’s revenue streams.

These include the provision of professional loan and trust management services in Australia and internationally.

Sydney-based Calibre is a non-bank operating with a warehouse funding line from the Westpac. It issued its first mortgage-backed security to institutional investors in October 2007.

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The acquisition was mooted in July, when Firstfolio said it would acquire the lender for its securitisation platform. Forsyth said the takeover would allow Firstfolio to enter the non-bank lending sector in earnest.

“The acquisition of Calibre marks a transformational change for Firstfolio, giving us the scale and capability to enter the non-bank lending space, which had been largely vacated in Australia following the global financial crisis,” Forsyth said.

The acquisition will deliver Firstfolio a $400m warehouse funding line through Westpac. Forsyth said Calibre will form part of the company’s newly-formed Firstfolio Capital division.

Firstfolio’s unique employee engagement program has been recognised as the best in the business by leading HR specialists.

Firstfolio’s Connect-Share-Thrive initiative won an award for the ‘best HR strategic plan’ at the Australian HR Awards 2011 earlier this week.

The Connect-Share-Thrive program was developed to foster a common, shared culture across Firstfolio following a rapid period of growth.

Since 2007 Firstfolio has completed 10 acquisitions nationwide, resulting in 76 per cent growth in the group’s loan portfolio to more than $20 billion.

The company’s general manager human resources Linda Cooper said the Connect-Share-Thrive HR strategy was integral to the organisation’s corporate culture and productivity.

“Ongoing acquisitions resulted in the blending of workplace cultures and a consequent diluting of the understanding of Firstfolio’s business strategy. Many staff now working for Firstfolio joined the organisation via acquisition and therefore did not have a strong association with Firstfolio’s culture and core values,” Ms Cooper said.

“Connect-Share-Thrive is a grassroots, employee-driven program designed to overcome these issues and inspire staff to be the best they can be.”

Firstfolio has seen a 9 per cent decrease in voluntary turnover, and an 11 per cent decrease in voluntary turnover of staff who joined the business via acquisition.

On Friday, 28th of October 2011, Firstfolio won a prestigious national award for its Connect-Share-Thrive HR strategy.

At a gala event at the Hilton in Sydney, Firstfolio was recognised for having the ‘Best HR Strategic Plan’ at the 2011 Australian HR Awards. Firstfolio’s Connect-Share-Thrive program was judged the winner ahead of other finalists including Foxtel, BNP Paribas, Railcorp and The Royal Women’s Hospital in Melbourne.

Firstfolio is very proud of this achievement and is honoured by the recognition.

The Connect-Share-Thrive strategy was developed with the specific aim of fostering a common, shared culture across the organisation following a rapid period of growth strategy over the past several years. Connect-Share-Thrive is now central to Firstfolio’s corporate philosophy, and is something that is hoped to make Firstfolio distinctive in the eyes of the industry.

CONNECT. SHARE. THRIVE

These three simple words encapsulate the strategy driving one of Australia’s fastest growing and most innovative financial services companies.
By identifying and connecting with new channels and opportunities and sharing a wealth of innovative products and services, Firstfolio is able to thrive together with its clients, partners, staff and shareholders.

Click here for FFF Annual Report 2011

NATIONAL FINANCE CLUB (NFC) again continued to dominate the mortgage  industry this year, topping off a remarkable year of business growth by being awarded the 2011 MFAA Mortgage Manager (<30 staff) of the Year.

“This is outstanding recognition of our hard work and we are truly proud of this  achievement. “To be highlighted as an industry leader by the MFAA is something that  all businesses in the mortgage and finance sector strive to achieve. It is testimony to the significant time and planning spent consolidating our business structures, developing products, creating online loan tracking systems, focusing on the training and  development in all elements of lending and customer service, developing a nationwide network of business development managers and securing excellent staff’: Mr Andrew Clouston, executive general manager said.

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Australian Broker: 26th August, 2011

Consumers have undergone a ‘quantum shift’ toward online transactions, Firstfolio has suggested.

Firstfolio chief executive Mark Forsyth has told Australian BrokerNews the company’s online sales platforms have seen substantial growth as more consumers shift their focus away from traditional face-to-face transactions. Forsyth said the company sees between 25-30% of its sales from its online channels, a shift which he believes represents changing consumer sentiment.

“We’ve seen a quantum shift in the last quarter. There’s a sense now if you buy something in a retail store you’re getting ripped off,” he commented.

As more broking businesses and lenders move online, Forsyth said consumers become increasingly comfortable with the idea of doing business on the web.

“When I see competitors, I think ‘happy days’. We don’t want to be the only people convincing the public it’s safe to go online of do their transactions online,” Forsyth said.

While online channels could represent competition for brokers, Forsyth indicated that most clients with needs beyond a “white picket fence deal” would still seek out the advice of brokers.

“My advice for the broker is he has to become a better consultant. He has to actually sit there and add value. We’re providing the tools, so they don’t have to worry about developing online platforms. What they should be focused on is their own personal skills at consulting with the customers,” he said.

Cost effective distribution channel
As a virtual mortgage lender, FFF operates without the usual restrictions faced by the banks. These include credit risk, infrastructure constraints and excess capital/liquidity requirements. The emergence of specialist fighting brands amongst the majors is designed to provide choice to customers and sustain growth in a soft yet competitive credit environment. FFF would strategically enhance the banks’ overall distribution capabilities at a far lower cost, either as a takeover target or strategic partner.

Solid 2011 performance despite headwinds

FFF increased 2011 NPAT by 42% to $6.4m and operating EBITDA (excluding $3.7m of acquisition and restructuring costs) by 49% to $15.6m. This was largely due to contributions from recent acquisitions (e.g. Club Financial Services and Apple Loans), margin management (operating EBITDA margin increased by 1% to 17%) and tight cost control (overheads as a % of revenue decreased by 1% to 24%). Operating EBITDA  was short of the $17-18m guidance largely as a result of the QLD floods (20% of all  loans sourced from the state).

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