Credit Corp (ASX:CCP) upgrades guidance after profit surge

Company News

by Lauren Evans

Credit Corp (ASX:CCP) has upgraded its guidance after a strong first half result, driven by a step up in US purchased debt ledger (PDL) and its acquisition of Radio Rentals.

The company’s net profit after tax grew 8 per cent to $45.7 million for the half, with its consumer loan book growing 9 per cent to $200 million.

The company upgraded its PDL acquisitions guidance, saying it expected between $300 million and $320 million for the full year. It was previously forecasting between $280 million and $300 million.

In the US, Credit Corp grew its market share to offset a contraction in PDL supply arising from the pandemic, in which the company secured a full year pipeline of more than $150 million. Credit Corp said the outlook is for a strong recovery in PDL supply over the medium term as US consumers rapidly increase their use of unsecured credit.

The company said it was on track for strong earnings growth across all its segments across the full year.

“Acquisition of the Radio Rentals business assets has accelerated our plans to enter the sale of goods by instalment market and adds to the suite of lending pilots already underway. All pilots utilise Credit Corp’s leading technology platform including fast online decisioning and superior collections,” said chief executive officer Thomas Beregi. 

Shares in Credit Corp (ASX:CCP) are trading 4.5 per cent higher at $35.42. 

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