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Credit Corp upgrades earnings forecast
Receivables manager Credit Corp issued revised earnings guidance last week, with a forecast that net profit for the 2011/12 financial year would be between A$23 million and $25 million.
Credit Corp made a net profit of $21 million in the year to June. At the release of its 2010/11 results, in August, the company said it expected to earn between $21 million and $23 million in 2011/12.
Credit Corp purchases debt ledgers and receivables from financial institutions and telecommunications companies. It has a portfolio with a face value of $3.3 billion, made up of 449,000 accounts.
Speaking at the company’s annual general meeting, chief executive Thomas Beregi said the upgrade was a result of a 14 per cent increase in collections and fee income, compared with the same period last year, and a 19 per cent increase in revenue.
The group has also exceeded its expectations for debt purchases in the current year. Beregi said there was a solid purchasing pipeline. Back in August, he said he expected subdued business conditions.
