Credit Corp has reported a flat profit of $44.1 million for the first half, missing Morgans’ forecast of $49.7 million. According to Morgans analyst Steven Sassine, the result was “more of a mixed bag”. Credit Corp Group is an Australian debt collection agency and purchaser of distressed debt ledgers. The company works with individuals to develop manageable repayment plans.
The primary negative from the report was a reduction in US purchasing guidance. The company lowered expectations from between $200 million and $230 million to a revised range of $160 million to $180 million. However, the US division still managed to post a profit of $11.7 million, marking a 64 per cent increase year-over-year.
To offset the softer US investment, ANZ debt ledger investment is slated to increase to between $120 million and $150 million. This is expected to support full-year profit guidance, which remains between $100 million and $110 million. The company anticipates a second-half profit uplift to approximately $61 million.
Following the announcement, shares in Credit Corp experienced a downturn. In morning trade, shares were down by 10.2 per cent, reflecting investor concern over the revised US purchasing guidance and its impact on future performance.
