Credit Corp reports return to strong growth trajectory
Tuesday, 03 Aug 2021
Credit Corp Group Limited reports the following highlights for the 2021 financial year:
- 11% increase in net profit after tax (NPAT) over the prior year to $88.1 million
- Strong US segment result, with NPAT doubling to $17.7 million
- Near record purchased debt ledger (PDL) investment outlay of $293 million
- Record second half gross lending volume of $105 million
- Record committed FY2022 starting PDL investment pipeline of $150 million
- Substantial investment capacity with cash and undrawn lines totaling $372 million
Despite challenging market conditions all segments exceeded full year expectations and finished the year with significant investment momentum for sustained earnings growth.
Announcement – Appointment of Non-Executive Director Thursday, 15 July 2021
Tuesday, 27 Jul 2021
The Board of Credit Corp Group Limited (Credit Corp) is pleased to announce the appointment of Mr. Phillip Aris as a Non-Executive Director. Phil brings extensive senior executive and board experience across a range of roles within the financial services and technology sectors across Australia, the United Kingdom and Asia. This appointment adds to the breadth of skills and experience of the Board in continuing to facilitate and support the execution of Credit Corp’s strategic growth agenda.
Mr. Eric Dodd, Credit Corp Chairman, said Phil’s blend of senior experience in both financial services and technology will be of great value to Credit Corp’s continued strategic growth.
“Digitisation is fundamental to both the consumer lending and debt buying segments of Credit Corp. Phil’s appointment will enhance the continued execution of our technology strategy,” he said.
Background on Phillip Aris
Phil has had a long Executive career in senior financial services roles including as Head of Credit Cards for Commonwealth Bank of Australia (ASX: CBA), as Chief Executive Officer of CountPlus Limited (ASX: CUP) and as the Regional Director of Strategy & Business Development for Thorn-EMI Asia Pacific, working across Australia, the UK and Hong Kong.
Since transitioning to Non-Executive roles, Phil has served on three advisory Boards supporting and mentoring technology-based start-ups as well as serving as Chairman of Xpon Technologies, a leading provider of data and analytics technologies to leading corporates. In these roles, Phil is a strong advocate for the role of technology within financial services, in particular data analytics and digitisation to enhance customer experience
Investor presentation - Market Update
Thursday, 29 Apr 2021
Credit Corp Group Limited CEO, Thomas Beregi, provided a market update to investors on 29 April, highlighting Q3 2021 performance.
View the Investor Presentation: Market Update
Announcement - Change of Chairman
Thursday, 04 Feb 2021
Change of Chairman Credit Corp Group Limited (Credit Corp or the Company) advises that Mr Donald McLay has stepped down from the position of Chairman.
Mr McLay’s decision follows the positive market reaction to the Company’s first half results and the recovery of its pre-COVID growth trajectory. Since the onset of COVID Mr McLay has worked closely with management to restore value for shareholders and, with this objective now achieved, he considers that it is the ideal time to appoint a new Chairman for the next phase of Credit Corp’s development. Mr McLay will remain on the Board as a Non-Executive Director.
The Board has elected Mr Eric Dodd to replace Mr McLay as Chairman. Mr Dodd has been a Director of Credit Corp since 2009 and brings considerable experience to the role, including past positions as CEO and Chairman of large financial services providers.
Mr McLay has served as Chairman of Credit Corp for more than 12 years, during which time the Company’s market capitalisation has grown from approximately $20 million to more than $2 billion. He has been instrumental to the Company’s successful expansion into the USA and its diversification into consumer lending.
Mr Dodd thanked Mr McLay for his leadership over such a long period of sustained growth and success. “Don’s contribution to the Company’s growth and development has been exceptional and I am pleased to continue working with him in his capacity as a Non-Executive Director” he said.
This announcement has been authorised for release by the Board.
Media Release - H1 FY2021 Results
Wednesday, 03 Feb 2021
Credit Corp reports first half profit growth of 10%
Credit Corp Group Limited reports the following highlights for the first half of the 2021 fiscal year:
- 10% increase in net profit after tax (NPAT) to $42.3 million
- Strong US purchased debt ledger (PDL) segment result with NPAT doubling to $8.0 million
- Record half-year PDL investment driven by the Collection House purchase
- Strong recovery in consumer lending volume over the December quarter
- Upgraded full-year outlook
All segments either met or exceeded expectations. Aus/NZ debt buying and consumer lending businesses achieved expectations while the US outperformed.
Despite limited organic purchasing Aus/NZ collections remained in line with the prior year. Productivity improved by 7% over the prior corresponding period (pcp), producing solid segment NPAT growth. Collections reduced over the December quarter in accordance with the phased withdrawal of COVID-19 support measures but remained in line with expectations.
The Collection House purchase was completed on the last day of the period and will make a strong contribution over the second half. Mr Thomas Beregi, CEO of Credit Corp, said that while all credit issuers selling prior to COVID-19 had resumed their sale programs purchasing volumes were only now starting to grow as the impact of issuer forbearance dissipated. “The Collection House purchase will enable us to maintain our operational scale and grow collections while ongoing purchasing volumes recover” he said.
Operational improvement and elevated purchasing over recent years in the US combined to deliver a 36% increase in US collections and a doubling in segment NPAT. Purchasing volumes contracted over the period as a consequence of diminished supply arising from issuer forbearance and the impact of monetary stimulus on competitor purchasing appetite and pricing. Mr Beregi said the strong US profit contribution showed that the business was realising its potential. “While COVID-19 has produced tight purchasing conditions, our US business is very competitive and can grow NPAT rapidly when conditions ease” he said.
After significant run-off driven by COVID-19 uncertainty and the impact of government and other support measures, lending volumes substantially recovered over the December quarter. The consumer loan book grew by 10% over the December quarter.
Prospects for further growth in the loan book and a recovery in segment NPAT are favourable. December quarter consumer demand, measured by application volume, exceeded the same period in the prior year and delinquencies remained at record lows. Upgraded systems will support more rapid growth, through an improved customer experience, and will facilitate new products.
Outlook and guidance
Favourable operational performance has produced a strong start to FY2021 and this is expected to continue over the balance of the year. While ongoing investment will likely remain subdued the one-off acquisition of the Collection House book will drive collections and NPAT ahead of any recovery in purchasing conditions. The Company remains debt-free, with $400 million in net cash and undrawn credit lines, putting it in a strong position to seize further one-off opportunities and grow investment across all segments as market conditions allow.