Credit Corp profit up 36pc

Debt management company Credit Corp yesterday announced a 66 per cent increase in revenue and a net profit of $19.6 million.

Chief executive Geoff Lucas said he was extremely pleased with the results, highlighting a sixth consecutive year of revenue growth above 60 per cent. The company increased the fully franked dividend by 28 per cent.

"We think we have a terrific business model and we work very hard to build what we believe is a superior operating model within our industry."

Credit Corp has forecast a $24 million profit for financial year 2008, which is a moderate 22 per cent increase compared to yesterdays 36 per cent increase.

Lucas commented, "At Credit Corp we have historically been happy to offer guidance because we do have a fair degree of clarity on the future performance of our business, in offering that guidance though we are deliberately conservative."

Financial highlights include:
• Net profit after tax $19.63 million, up 36 per cent.
• Revenue $135 million, up 66 per cent.
• EBITDA $89.51 million, up 63 per cent.
• Earnings per share 44.98 cents, up 27 per cent.
• Final dividend of 12.75 cents taking the full year to 23 cents fully franked, up 28 per cent.
• Return on equity, 30 per cent.
• A dividend payout ratio of 50 per cent.