Credit Corp to acquire Australian ledger book of Collection House Limited
Thursday, 24 Dec 2020
Credit Corp to acquire Australian ledger book of Collection House Limited and increases 2021 guidance
Credit Corp Group Limited (Credit Corp) announces today that it has entered into a binding agreement to acquire the Australian Purchased Debt Ledger (PDL) book of ASX listed Collection House Group Limited (Collection House) for a total consideration of approximately $160 million plus the provision of a shortterm loan of $15 million which is expected to be fully repaid within 9 months. This loan is secured against Collection House’s tax receivables.
View the Confirmation of Release - CCP - Acquisition of Collection House Australian ledger book
2020 Annual General Meeting Results
Thursday, 05 Nov 2020
Credit Corp’s AGM was held as a virtual meeting today at 11.00am. We provided shareholders the ability to participate in the AGM by watching the AGM live online. The 2020 Annual General Meeting Results can be viewed here.
View CEO AGM Presentation
Annual General Meeting
Friday, 30 Oct 2020
The meeting will be held as a virtual meeting at 11.00am on Thursday, 5 November 2020.
We are providing shareholders with the ability to participate in the AGM by watching the AGM live online through a facility which will allow shareholders to vote and ask questions online.
To view the virtual AGM live, please follow this link and instructions thereafter.
2020 Annual Report
Thursday, 01 Oct 2020
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 5 November with the meeting commencing at 11 am. To view the virtual AGM live, please follow this link and instructions thereafter.
For any shareholder enquires about holdings please contact Credit Corp's share registrar Boardroom Limited on 1300 737 760 (in Australia) +61 2 9200 9600 (international) or by visiting www.boardroomlimited.com.au
Credit Corp prepared for a return to growth
Tuesday, 28 Jul 2020
Credit Corp Group Limited released its FY2020 results to the market this morning.
Credit Corp Group Limited (Credit Corp or the Company) reports:
- FY2020 net profit after tax (NPAT) of $15.5 million after accounting for the impairment of purchased debt ledger (PDL) assets and additional provisioning arising from the impact of COVID-19
- NPAT before these adjustments of $79.6 million - 13 per cent above the prior year
- The proven ability to operate effectively during COVID-19 isolation and lockdown periods
- A strong balance sheet comprising of cash and undrawn lines totaling $400 million, together with an outlook for free cash flow of $175 million inFY2021
- Renewed interest in debt sale from credit issuers and the prospect of increased sale volumes
Steps taken to adapt to the impacts of COVID-19
PDL pricing models and consumer lending criteria have been adjusted to account for persistently high levels of unemployment, in excess of 10 per cent, and a reduction in government support, stimulus measures and private sector forbearance (temporary support) over time. Credit Corp is now pricing PDLs and issuing consumer loans at these adjusted settings.
These settings have been applied to the carrying value of the Company’s financial assets and the net economic benefit of its ongoing purchasing commitments. This has given rise to charges for impairment and provisions in Credit Corp’s FY2020 results, reducing reported NPAT by $64.1 million.
The Company has effectively transitioned to a combination of work-from-home and office-based activity across all locations. This has enabled Credit Corp to adapt to isolation and lockdown periods while maintaining operational capacity and effectiveness. This helped produce NPAT before COVID-19 adjustments of $79.6 million, which was 13 per cent above the prior year.
To meet heightened expectations of conduct Credit Corp has supplemented its leading approach to hardship with additional temporary measures. These have included an interest freeze on all debt purchase accounts, repayment moratoriums and the suspension of legal, repossession and credit reporting activity.
To facilitate continued purchasing and lending over an extended period of uncertainty and prepare for opportunity, Credit Corp has strengthened its balance sheet. Over the second half of FY2020 the
Company generated $110 million in free cash flow, which was supplemented with a $152 million equity raising. Credit Corp is now debt free, with $400 million in cash and undrawn credit lines.
Recent operating experience and outlook
Collections experience over recent months has returned to pre-COVID expectations, with an uncharacteristically high incidence of one-off repayments. The Company does not expect this to continue as temporary support is reduced over time.
While there has been some recovery in lending demand over recent months, the consumer loan book has experienced significant run-off. The Company expects, however, that the loan book will further stabilise as lending demand increases in line with the ongoing withdrawal of temporary support.
Recent discussions with major clients in all jurisdictions show an increased interest in debt sale, with some clients in the United States anticipating growth in sale volumes of up to 80 per cent in 6 to 12 months’ time. While this is positive, for Credit Corp to fully participate, pricing will need to adjust in accordance with the medium-term outlook for collections.
This media release should be read in conjunction with Appendix 4D, Consolidated Interim Financial Statements and results presentation.
To watch the presentation go to: https://www.creditcorpgroup.com.au/investors/interviews-presentations/