- Credit Corp Group (CCP) has recorded a 10 per cent increase in net profit after tax (NPAT) in 1H FY21, with total profits coming in at $42.3 million
- The debt buyer said its Australian and New Zealand segments met expectations while the U.S. segment exceeded its benchmarks
- Specifically, strong U.S. purchased debt ledger (PDL) results saw the segment’s NPAT double to $8 million
- The ASX-200 lister is expecting the momentum to continue in 2H FY21, upgrading its profit and PDL acquisition guidance
- Shareholders will benefit from the success, with the company announcing a 36 cent half-year dividend
- Shares in Credit Corp Group are up 6.25 per cent and trading at $31.30 each
Debt collection business Credit Corp Group (CCP) has recorded a 10 per cent increase in net profit after tax (NPAT) in 1H FY21.
The debt buyer has released its half-yearly results today, showing its NPAT grew to $42.3 million at the end of December.
Alongside the increasing profits, CCP also revealed its Australian and New Zealand segments met expectations, while its U.S. segment exceeded its benchmarks.
Specifically, a 36 per cent increase in U.S. purchased debt ledger (PDL) results saw the segment’s NPAT double to $8 million.
In addition to this, Credit Corp said its consumer loan book grew by 10 per cent over the December quarter.
During the half year period, the ASX-200 lister bought fellow Australian business Collection House.
Credit Corp CEO Thomas Beregi said this acquisition, coupled with its growing U.S. business, has set the company up for a strong second half.
“While COVID-19 has produced tight purchasing conditions, our U.S. business is very competitive and can grow NPAT rapidly when conditions ease,” he said.
Credit Corp has upgraded both its profit and PDL acquisition guidance for 2H FY21.
PDL acquisitions are now expected to total between $310 million to $330 million, up from the last guidance of between $270 million to $330 million.
The NPAT forecast has also been moved to between $85 million and $90 million, up from the last forecast of $70 million to $85 million.
Additionally, guidance for net lending volumes has also been bumped up to $10 million.
Meanwhile, Credit Corp entered 2H FY21 with around $400 million in cash and credit lines available.
Shareholders are also set to receive a 36 cent half-year dividend, which is the same price as the one handed out to investors at the end of 1H FY20.
It’s also a turnaround from the end of FY20, when the company decided not to pay a final dividend due to COVID-19.
Following today’s results, Credit Corp Group’s shares are up 6.25 per cent and trading at $31.30 each at 1:36 pm AEDT.