Credit Corp Group, the buyer of debt from those who fall behind in loan repayments, posted a 20% rise in net profit after tax to $55.2 million for the year to June.
The company says the results are a function of strong core debt purchasing business operations and impressive contributions from organic expansion into consumer lending and US debt purchasing.
Profit from the company’s lending division doubled to $12.3 million.
“We started lending from scratch just over five years ago and have built a sizeable operation servicing 150,000 customers,” says Thomas Beregi, CEO of Credit Corp.
“It now accounts for 28% of our investment and 22% of earnings and will propel Credit Corp’s growth over the next few years.”
Over the 12 months, Credit Corp outlaid $250 million to acquire debts, including $202 million in the core Australian and New Zealand business.
The company says these record outlays produced 11% growth in total collections and will underpin another year of strong core business performance in 2018.
Credit Corp buys distressed consumer debt from banks, finance companies, and telecommunication companies. It then refinances loans held by consumers who are in default.
The company declared a final fully franked dividend of 31 cents a share, taking the full year payout to 58 cents, up 8 cents on last year.
Credit Corp expects profit in 2018 to be between $60 million and $63 million.
The full year 2017 numbers: