Pioneer Credit cautious on unemployment and consumer sentiment 24 August 2015 3:28PM John Kavanagh Impaired debt buyer Pioneer Credit said it was concerned about the impact of any further increase in unemployment on the performance of its portfolio.The company, which reported strong growth in earnings for the year to June 2015, also said it was cautious about the impact low consumer confidence would have on its debt recovery activities.Pioneer's comments, included in a results presentation on Friday, echo comments earlier last week by another debt buyer, Collection House, which said its customers were less inclined to commit to repayment plans.Pioneer Credit made a net profit of A$7.4 million for the year to June, a six-fold increase over the previous corresponding period. Revenue was up 51 per cent to $38.7 million.After adjusting for one-off costs related to the company's initial public offering in May last year, operating profit rose 70 per cent from $4.6 million in 2013/14 to $7.8 million in the year to June.The company spent $49.4 million on debt purchases in the year to June and forecast that it would spend at least $42 million in the current financial year.The company buys the majority of its debt from banks, with the balance coming from store finance, consumer leasing and auto leasing portfolios. It said it had no exposure to payday lenders, utilities or telcos.The face value of acquired debt at the end of June was $843 million, with an average purchase price of 16.3 cents in the dollar.Accounts that have entered into payment arrangements were worth $133 million, with an average balance of $10,163. Cash receipts from customer payments were up 56 per cent.