Credit Corp first half a slight miss but full-year guidance maintained
Credit Corp has generated a net profit of $25.2 million from revenues of $129 million in the six months to December 31, 2016. This represented year-on-year growth of 19% and 15% respectively.
Analysts at Morgans CIMB were forecasting a first half net profit of $26.4 million and an interim dividend of 28 cents.
Credit Corp declared a dividend of 27 cents per share.
The diversified debt collections/management and consumer lending business group’s loan book increased substantially in the December half, and the recurring payment arrangements book which grew by 5% over the six month period now has a face value of more than $1.2 billion.
The company increased its market share in 2016 with accelerated levels of debt ledger purchases and the opportunistic acquisition of the NCML business, but management said that competition had remained strong with some loss of share during the first half of fiscal 2017.
Credit Corp increased its debt ledger acquisitions guidance provided in November from a mid-range of $205 million to a mid-range of $230 million.
Mid-range net profit and earnings per share guidance of $54 million and $1.14 respectively has been maintained.
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