Creditable year for Credit Corp

Credit Corp has met or surpassed all its targets for the June 2009 financial year, and while there won't be any bonanza from chasing the rising ranks of delinquent debtors, the debt collection specialist is at least producing passable returns for shareholders.

The company said yesterday it reported a 12 per cent rise in EBITDA to $97.4 million in the year to June, a three per cent rise in net profit to $10.7 million and a return on equity of 15.4 per cent.

Investment in purchased debt ledgers was down by more than half over the year, with an outlay of $37.2 million.

The firm has committed to invest $42 million in ledgers (of credit card debt and the like from banks) and said it may invest up to $60 million in the 2010 financial year.

In a presentation published yesterday Credit Corp suggested lenders were reluctant to sell debt and that the price of the (heavily discounted) ledgers may be on the rise.

Productivity has improved, but perhaps stabilised, with the "revenue per hour" from one person in a call centre contacting debtors producing about $230 for the firm.