Receivables management company Collection House has produced a 13 per cent increase in net profit for the year to June, on the back of a 65 per cent increase in debt purchases during the year.Collection yesterday reported net profits of $10.1 million. Earnings per share rose 13 per cent. The return on equity was a modest 10.5 per cent, up from 9.7 per cent in the previous corresponding period.The company spent $49 million purchasing debt, compared with $29 million in 2009/10.Collection House's chief executive, Matthew Thomas, said, in a statement, that the increase in debt purchases meant the company was well positioned for continued earnings growth in the current financial year.Thomas said the company planned to invest up to $70 million in debt purchases in the current year.The company extended its credit facility during the year from $85 million to $100 million. The face value of its loan portfolio is $1.3 billion, representing 239,000 accounts.Thomas said: "The company expects to benefit from a number of favourable factors during the coming year, including improved collectability of debt as a result of a higher savings rate and a propensity to pay down debt."