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Collection House on a roll

21 January 2013 5:15PM
Receivables manager Collection House issued a statement on Friday saying it expected to report strong profit growth for the December half.The company made a net profit of A$12.7 million in the year to June - up 26 per cent on the previous year.It will report profit growth of around 27 per cent for the six months to December.Collection House had a strong debt ledger acquisition program in 2011/12, which contributed to earnings growth, and this has continued during the December half.Last year the company established a commission-based collections business and signed up all four major banks as clients.The real test the company will be to see whether it can improve its return on equity. ROE on 2011/12 earnings was 11.6 per cent.When former Bank of Queensland chief executive David Liddy joined the Collection House board as chairman last year, he said one of his goals was to produce a higher ROE.

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