News

Credit Corp Group Limited (Credit Corp) announces that it has entered into a binding agreement to acquire the New Zealand purchased debt ledger (PDL) book of Collection House Group Limited (Collection House; ASX:CLH) for a total consideration of approximately A$12 million. As part of the transaction, Credit Corp has acquired the senior secured debt of Collection House from its banking syndicate and advanced a working capital loan facility to Collection House, totalling A$7.5 million of funding. This $7.5 million is secured by a first ranking security over the majority of Collection House’s assets including the New Zealand PDL book and, at completion, will be netted against the $12 million purchase price, whereupon Credit Corp will release Collection House from all remaining obligations under the aforementioned lending facilities.

This investment is expected to deliver Credit Corp’s required investment return and there will be no participation in any out-performance by Collection House. Completion is expected to occur by the end of March, 2022.

Read the full media release.

Credit Corp Group Limited reports the following highlights for the first half of the 2022 fiscal year:

• 8% increase in net profit after tax (NPAT) to $45.7 million[1]
• 9% growth in the consumer loan book over the half to $200 million
• Record half-year investment driven by:

o   Step up in US purchased debt ledger (PDL) investment to $150 million+ per annum

o   Radio Rentals acquisition

• On track for strong earnings growth across all segments over the full year

[1]Excluding $4.5 million after-tax US Paycheck Protection Program loan forgiveness during H1 FY2022.

Media release | Video presentation |  Full presentation | View the Appendix 4D and Interim Financial Statements