Credit Corp’s US debt ledger purchasing business was the company’s strongest segment during the December half, producing revenue growth of 33 per cent and profit growth of 148 per cent in what was otherwise a flat result for the group.

Credit Corp reported net profit of $42.3 million for the six months to December, an increase of 9.5 over the previous corresponding period. Revenue was down 1.5 per cent to $187.9 million.

The company’s biggest division, Australia and New Zealand debt ledger purchasing was flat, with revenue up 0.4 per cent to $113.3 million and profit up 2.6 per cent to $47.4 million.

Australia and New Zealand lending contracted, with revenue down 25.5 per cent to $37.4 million and profit down 29.9 per cent to $9.6 million.

The US business produced revenue of $37.3 million and profit of $11.7 million.

The company faced a number of hurdles during the half. Debt purchasing volumes contracted because of reduced supply, which was the result of lender forbearance and monetary stimulus.

It said debt ledger investment would remain subdued. However, in December Credit Corp acquired Collection House’s Australian debt ledger book, which was the biggest acquisition in its history.

The value of the Australian and New Zealand debt portfolio increased from $7.7 billion at the end of June last year to $8.6 billion at the end of December.

Credit Corp chief executive Thomas Beregi said: “Acquisition of the Collection House book will drive collections and profit ahead of any recovery in purchasing conditions.”

Government and bank support measures also led to a runoff in the lending book. The value of the book was $168 million at the end of December – down from $230 million 12 months earlier.

The company said the lending business started to turn around in the December quarter, with 10 per cent growth in the book during the quarter. It said there was plenty of demand in the pipeline.