COVID-19 - Credit Corp withdraws FY20 guidance

Friday, 20 Mar 2020

Credit Corp Group Limited (Credit Corp) advises today that it is withdrawing its 2020 earnings and investment guidance due to uncertain impacts arising from the spread of coronavirus (COVID-19).

These impacts include the potential for increased restrictions on the availability of Credit Corp’s workforce as well as the prospect of a deterioration in economic conditions which may reduce the capacity of customers to make repayments.

The company has continued to perform strongly over recent weeks and no material impacts arising from COVID-19 have yet been observed in operating results.

Credit Corp has a proven and industry-leading approach to customer hardship which delivers strong business results and sustainable consumer outcomes. The company will continue to apply this approach in circumstances of increased demand for these capabilities by the company’s major credit issuer clients.

Credit Corp’s balance sheet and funding positions are strong, with $170 million of cash and undrawn credit lines currently available under facility agreements that mature in 2022 and 2023. Gearing remains conservative. Credit Corp is well positioned to secure favourable investment opportunities as and when they arise.

Credit Corp reports first half profit growth of 15%

Tuesday, 28 Jan 2020

Credit Corp Group Limited (Credit Corp) reports the following highlights for the first half of the 2020 fiscal year:

  • 15% increase in Net Profit after Tax (NPAT) to $38.6 million
  • 13% growth in the consumer loan book to $230 million
  • Impressive US debt buying growth metrics:
    • 57% increase in collections
    • 55% increase in investment
    • 75% increase in headcount
    • Commencement of a second collections facility with 270 seat capacity
  • Baycorp acquisition on track for full-year NPAT of $6m and integration ahead of schedule

All segments grew profits strongly, with the consumer lending and US debt buying businesses each growing first half NPAT by more than 20%. The US debt buying segment remains on track for full-year profit growth of 45% to 65%.

The Australian/New Zealand debt buying segment produced record collections and NPAT, with strong results from the existing business complemented by the performance of the acquired Baycorp assets. Credit Corp grew purchased debt ledger (PDL) market share late in the first half, bringing the pipeline of contracted Australian/New Zealand purchasing within the previous full-year guidance range.

Mr Thomas Beregi, CEO of Credit Corp said that these outcomes were attributable to effective operations and superior compliance credentials. “The integration of strong operations with leadership in sustainable collection practices makes Credit Corp a very compelling proposition for Australian and New Zealand credit issuers” he said.
The Baycorp acquisition is on track to achieve business case outcomes. The integration is ahead of schedule, with actions taken to date realising $13 million in annualised cost savings and ensuring that the agency businesses in both Australia and New Zealand are operating profitably.

Consumer lending has had a strong start, with the loan book up by 13% over the same point in the prior year. Mr Beregi highlighted ongoing growth in the Wallet Wizard customer base. “We have followed up last year’s unexpectedly strong growth in new customer volume with another 8% more new customer volume growth. Wallet Wizard is now well-known as the most sustainable product in its segment and the absence of any ongoing fees means that it can be cheaper than many prime credit card offerings.”

Credit Corp’s focus in the US has been on expanding productive capacity to match investment growth over a prolonged period. Expanded capacity helped deliver collections growth of 57% over the same period in the prior year. The commencement of a second facility in Washington State will ensure that productive capacity continues to grow to meet the US market opportunity.

Mr Beregi noted that despite the adverse impact of substantial recruitment on efficiency, Credit Corp continued to achieve operating metrics comparable to those achieved by the long-established publicly traded debt buyers. “We have recruited rapidly over the past 8 months and our operating metrics remain in line with those of our competitors. This provides us with the confidence that we have a platform in place that will enable us to achieve our strategic objectives in the US” he said.

Outlook for balance of 2020

The company provided upgraded guidance with the acquisition of Baycorp in August 2019 and now confirms 15% to 18% growth in NPAT for fiscal 2020. The acquisition and all business segments have performed strongly over the first half and remain on track. With an increased PDL investment pipeline in both Australia/New Zealand and the US, the PDL investment guidance range has been tightened to a range of $310 to $320 million.

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

2019 Annual Report, Notice of Meeting and Proxy Form

Tuesday, 01 Oct 2019

Credit Corp released its Annual Report, Notice of Annual General Meeting for shareholders and Proxy Form.

The Annual General Meeting will be held on Monday 4 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.

2019 Annual Report


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


Credit Corp acquires Baycorp and increases 2020 guidance

Friday, 16 Aug 2019

Credit Corp Group Limited (Credit Corp) announces today that it has acquired Baycorp Holdings Pty
Limited and its associated entities (collectively Baycorp) from Encore Capital Group (NASDAQ: ECPG)
for a total net consideration of approximately A$65 million.

Baycorp is a large and well-established debt purchasing and debt collection operator across Australia
and New Zealand. Its assets comprise a sizeable purchased debt ledger (PDL) book, a PDL collection
platform and agency collection businesses in Australia and New Zealand.

Some integration of the acquired businesses will be required in to order to deliver pro-forma returns.
The PDL collection platform will be promptly merged with Credit Corp’s existing Australian and
New Zealand debt buying business. The New Zealand agency business will be preserved and
enhanced. The Australian agency operation will be progressively restructured to ensure that it operates

Mr Thomas Beregi, CEO of Credit Corp, commented that the acquisition provided both an attractive
secondary PDL book acquisition and the opportunity to create a large and successful agency business.
“We expect to achieve our targeted investment return on the PDL component of the transaction and see
opportunity to scale up our existing agency activities” he said.

Baycorp’s New Zealand agency business enjoys a strong reputation and an impressive position in the
market. Mr Beregi acknowledged the quality of the business and identified the strategic benefit of
acquiring a physical presence in the market. “Entry into the New Zealand agency market by acquiring a
leading operator will enable us to broaden our client relationships and put us in a better position to grow
our debt buying market share” he said.

View the full media release and updated guidance details here.

A strong FY19 result and increased opportunity

Monday, 29 Jul 2019

Credit Corp Group Limited (Credit Corp) reports the following highlights for the 2019 fiscal year:

  • 9% increase in Net Profit after Tax (NPAT) to $70.3 million
  • 16% increase in the consumer loan book to $212 million
  • Acceleration in US debt buying:

o   69% increase in collections

o   40% increase in investment

o   69% increase in year-end headcount

o   A near tripling in segment NPAT

  • A return to investment growth in Australian/New Zealand debt buying

Mr Thomas Beregi, CEO of Credit Corp, said the result reflected strong growth from the consumer lending and US debt buying businesses, which together represented over 36% of 2019 earnings. “Both segments performed very well and we are guiding for them to grow strongly in 2020. The US is on track to fulfil its potential of becoming as large as the Australian/New Zealand debt buying operation in the medium term” he said.

The core Australian/New Zealand debt buying segment produced near-record collections and earnings results despite two and a half years of reduced investment. Mr Beregi acknowledged this strong operational performance and emphasized the importance of further improvement in the company’s industry-leading complaint rate in producing a return to core business investment growth late in the year. “Credit Corp’s compliance superiority is increasingly valued by our clients and is enabling us to hold, and in some cases grow, market share despite aggressive competitor bidding” he said.

The consumer lending business benefited from tighter lending standards adopted by prime lenders and increased recognition of Wallet Wizard’s product superiority in the cash loan segment. Mr Beregi highlighted unexpectedly strong new customer growth. “We have grown new customer lending by 18% in a favourable environment because we have the cheapest and most sustainable product in our segment of the market” he said.

Investment conditions in the US debt buying market remain favourable, with continued growth in unsecured credit issuance and rising charge-off rates. Mr Beregi drew attention to increased investment and capacity in the US. “We increased our investment in the US by 40% with the addition of new purchasing relationships and we grew headcount strongly during the second half. It is important that we continue to grow our headcount to maximize the present market opportunity” he said.

Mr Beregi drew attention to the strong operating metrics being achieved by the business against the two larger incumbent US debt buyers. “Our operating metrics already compare well to our more established competitors and we are still working to improve them. This gives us the confidence to say that we are on track to build a large and successful business in the US” he said.

Outlook for 2020

Expected increases in earnings from the US debt buying and consumer lending divisions will drive strong profit growth in 2020, with guidance for profit growth in the range of 7% to 10%.

A return to investment growth in Australian/New Zealand debt buying and signs of competitor stress in that market create the prospect of increased investment across all three business segments. The company retains significant debt headroom and will invest as opportunities arise.

At this point the company provides PDL investment guidance in the range of $220 - $240 million.

Initial 2020 guidance is provided in accordance with the following ranges:

Guidance (July 2019)

PDL acquisitions

$220 - $240m

Net lending volumes

$60 - $65m


$75 - $77m


138 - 140 cents


72 cents


This media release should be read in conjunction with the Appendix 4E, Consolidated Financial Statements and Results Presentation.

 To watch the presentation go to: