Credit Corp first half a slight miss but full-year guidance maintained

By Trevor Hoey. Published at Jan 31, 2017, in Features

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.

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.


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S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

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