News

Completion of $125 million institutional placement

Tuesday, 02 Apr 2019

Credit Corp successfully completes A$125 million institutional placement

Credit Corp Group (ASX:CCP) is pleased to announce the successful completion of its fully underwritten institutional placement, as announced to the market on Monday, 1 April 2019. 

Click here to read the full media release

Media Release: Market update & equity raising | Investor Presentation: Market update & equity raising 


CCP reports FY19 H1 profit growth of 13% and improved outlook

Tuesday, 29 Jan 2019

Credit Corp Group Limited (Credit Corp) reports the following highlights for the first half of the 2019 fiscal year:
  •         13 per cent increase in Net Profit after Tax (NPAT) to $33.6 million
  •         18 per cent growth in the consumer loan book to $203 million
  •         71 per cent growth in US revenue and initial purchases from two new issuers
  •         Upgraded full year outlook for NPAT, purchasing and net lending

The consumer lending and US business segments exceeded expectations during the half and the core Australia and New Zealand debt buying segment sustained near-record collections despite reduced purchasing.

Mr Thomas Beregi, CEO of Credit Corp said that to maintain collections after two years of reduced investment in Credit Corp’s core Australia and New Zealand segment reflects a very strong operational performance. “Our uniquely resilient collection approach and our focus on continuous improvement have produced an outstanding result from our core debt buying business” he said.

Total investment in financial assets was up by 5 per cent over the prior year, with an increased allocation to the consumer lending and US business segments. The Australia and New Zealand debt buying market remains competitive, with limited purchasing opportunities capable of meeting Credit Corp’s return criteria.

Mr Beregi said that competition remained very strong in the Australia and New Zealand debt buying market. “We have seen some very high prices being paid for purchased debt ledgers (PDLs) by competitors. Our response is to remain disciplined and prepare ourselves for better opportunities in the periods ahead.”

In anticipation of increased investment opportunities across all businesses the company maintains debt headroom of almost $100 million under its present banking facilities.

Consumer lending growth for the half was very strong, with the loan book up by 18 per cent over the same point in the prior year. The result was driven by 20 per cent growth in new customer volume.

Mr Beregi put the strong result down to providing consumers with the cheapest and most sustainable product in the market. “Wallet Wizard is the cheapest cash loan available in our segment of the market. It is substantially cheaper than any commercially-provided offering and is even cheaper than a charitably-funded alternative from the not-for-profit provider.”

US market conditions remain favourable, with continued growth in unsecured credit issuance and charge-off rates which remain below historical levels. Credit Corp has secured a $74 million PDL investment pipeline in the US, a 23 per cent increase on the $60m outlaid in 2018. This investment includes initial purchases from two new issuers, including the largest seller of charged-off debts in the market.

Mr Beregi said that the US was now growing strongly and profitably. “Collections and revenues are up by more than 70 per cent over the prior year. We will continue to build out our Salt Lake City site and plan to grow our purchasing accordingly” he said.

Indicators of collection effectiveness and efficiency in the US operation are already comparable to those being achieved by publicly traded competitors in that market. This provides confidence in Credit Corp’s ability to successfully execute on the substantial US opportunity.

Outlook for balance of 2019

As a consequence of increased US investment and unexpectedly strong consumer lending book growth in the period, 2019 earnings guidance has been revised to represent profit growth in the range of 7 to 9 per cent. The company has also increased its PDL acquisition and net lending guidance. The updated 2019 guidance is in accordance with the following ranges:

Upgraded guidance

(November 2018)

Upgraded guidance

(January 2019)

PDL acquisitions

$170 - $190m

$200 - $210m

Net lending volumes

$45 - $50m

$50 - $55m

NPAT

$67 - $69m

$69 - $70m

EPS

140 - 144 cents

144 - 146 cents

 

This media release should be read in conjunction with the Appendix 4D, Consolidated Interim Financial Statements and results presentation.

 

To watch the presentation click here.


2018 Annual General Meeting

Wednesday, 31 Oct 2018

Credit Corp's Annual General Meeting for Shareholders will be held tomorrow at 11:00am Sydney time at Grosvenor Place, Level 12, 225 George Street in Sydney. To listen to the live audio webcast, please register here

Meeting Results and the Performance Update will be published here tomorrow.


2018 Annual Report, Notice of Meeting and Proxy Form

Friday, 28 Sep 2018

Today, Credit Corp released its Annual Report, Notice of Annual General Meeting for shareholders and Proxy Form. The Annual General Meeting will be held on Thursday 1 November with registration and morning tea at 10:30am and the meeting commencing at 11am. The Meeting is held at Boardroom Pty Limited, Grosvenor Place, Level 12, 255 George Street in Sydney.

View the 2018 Annual Report | View the Notice of Meeting & Proxy Form

For any shareholder enquiries about holdings please contact Credit Corp's share registrar Boardroom Limited on: 1300 737 760 (in Australia) +61 2 9290 9600 (international) or by visiting www.boardroomlimited.com.au. 


Credit Corp reports another year of strong growth

Tuesday, 31 Jul 2018

Credit Corp reports another year of strong growth with NPAT up 17%

 Credit Corp Group Limited (Credit Corp) reports the following highlights for the 2018 fiscal year: 

  • 17% increase in Net Profit after Tax (NPAT) to $64.3 million;
  • 30% growth in Australia/New Zealand consumer lending business NPAT;
  • Inaugural full year profit from the US debt buying operation; and
  • Continued NPAT and collections growth from the Australian/New Zealand debt buying operation

Mr Thomas Beregi, CEO of Credit Corp, said the result reflected the successful diversification of the company over the last five years, with almost 30% of 2018 earnings derived from the organically developed consumer lending and US debt buying businesses. “Both segments have the potential for substantial growth and the US, in particular, could grow to become as large as the Australian/New Zealand debt buying operation in the medium term” he said.

Read the full media release | Watch the presentation | Listen to the Q&A Call | View 4E & Financial Statements for the year ended 30 June 2018