- Credit Intelligence's (CI1) subsidiary, Hup Hoe Credit (HHC), has experienced a surge in revenue to $4.4 million in the year to September 30, 2020
- This, along with a $1.9 million profit after tax, was achieved despite a 2-month hiatus due to COVID-19
- CI1 acquired HHC last year which aligned with its plans of expanding into the Asian credit funding market
- As part of the agreement, Ci1 is required to issue vendors shares if HHC achieves a profit of more than $700,000 in the 12 months to September 30
- The company expects it will need to issue up to a further 200 million new shares to the vendor
- Additionally, Credit Intelligence has appointed Russell Goodman as a Director to strengthen the board presence in Australia
- Company shares are up 3.85 per cent and trading for 2.7 cents
Credit Intelligence's (CI1) subsidiary, Hup Hoe Credit (HHC), saw a surge in revenue to $4.4 million in the year to September 30 2020.
HHC achieved this revenue and a profit after tax of $1.9 million despite a brief hiatus in March and April due to COVID-19.
Last year, Credit Intelligence acquired a 60 per cent interest in HHC for over $1.2 million. HHC is a Singapore-based registered moneylender which provides short-term loans to individuals.
The company bought a majority interest in HHC as part of its plan to expand into the Asian credit funding market.
As part of the sale and purchase agreement that was outlined in October 2019, CI1 are requiried to issue the vendors additional company shares if the profit for the 12 months ending on September 30 2020 exceed $700,000.
HHC's results for the year to September 30 will need to be review and audited, however the company expects it will be required to issue up to a further 200 million new shares to the vendor.
CI1 will seek shareholder approval regarding this at the upcoming Annual General Meeting. The issue may then be adjusted when the determination has been finalised and the audit has been completed.
Additionally, Credit Intelligence has appointed Russell Goodman as a Director, effective immediately.
Russell has over 30 years' experience in stock broking and equity investments - including more than 10 years as the Head of Institutional Australian Equities Dealing Desk for Credit Suisse First Boston.
He was also a fund manager at ANZ Funds Management and K2 Investment Management. Mr Goodman has also held the role of Director and Chairman at Vmoto (VMT).
"We are delighted to welcome Mr Russell Goodman to the Board of Credit Intelligence. This appointment strengthens our Board presence in Australia, as we continue to grow the business in Australasia and globally," Chairman Jimmie Wong said.
Company shares are up 3.85 per cent and trading for 2.7 cents at 11:50 am AEDT.