COVID-19 costs hit Credit Corp (ASX:CCP)

Company News

by Anna Napoli

Debt collector Credit Corp (ASX:CCP) expects to report a financial 2020 profit between $75 million to $80 million before the impairment cost on purchased debt ledger assets and costs associated with COVID-19.

In total it expects to impair the carrying value of its debt ledger assets by 13.5 per cent due to the COVID-19 hit on debtors.

Loan loss provisions are expected to increase from 19 per cent of the gross loan book to 24 per cent. 

The company says it enters the 2021 financial year in a strong position with no net debt and undrawn lines of $375 million.

Shares in Credit Corp (ASX:CCP) are trading 4.9 per cent higher at $16.01.