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The news comes less than a week after buy now, pay later rival Splitit saw its shares sink on the news that its revenue and active customer numbers declined.

Flexigroup said that based on its unaudited financial accounts it expects to report cash net profit of $34.5 million for the first half ending December 31.

Credit Suisse analysts had forecast a first half net profit of $39.8 million.

The consumer credit provider also reported a 12 per cent increase in customer numbers and a15 per cent lift in retailers signed up to its services.

Flexigroup said its buy now, pay later volumes increased 23 per cent.

Chief executive Rebecca James said the company expects to “increase the trajectory of volume growth” as the year progresses from both the onboarding of new retail customers and increased investment across all areas of the business.

The company also flagged higher costs as it invests in its transformation and said it will not be issuing short term earnings guidance as it believes a focus on short term profit objectives can “contradict the broader goal” of achieving its longer term objectives of becoming a long term industry leader.

Flexigroup also signed Flight Centre to an exclusive four-year deal for its long term interest free finance product – as opposed to its Afterpay-rivalling buy now, pay later product.

Flexigroup said it is expected to result in “a double-digit increase in total income for the company over the life of the partnership.”

In February last year investment banker John Wylie made a $25 million bet on FlexiGroup, taking a 5 per cent stake and a board seat as the company announced its aggressive plans to gain market share in the buy now, pay later sector when the stock was trading below the $1.20 mark.