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Highlights

  • Credit Corp Group is a debt purchasing, collection and consumer lending company
  • In 1HFY24, revenue increased by 16% YoY to AUD 255 million and consumer lending book grew by 16% YoY to AUD 414 million
  • Bennelong Australian Equity Partners Pty. Ltd. has the maximum stake in CCP with a shareholding of 14.03%

Credit Corp Group Limited (ASX: CCP) is an ASX-listed financial services company which is engaged in debt purchasing, collection and consumer lending. The Australia-based firm has presence across New Zealand, Australia and the USA markets.

In the first half of the financial year 2024 (1HFY24), the company recorded 16% YoY rise in the total revenue to AUD 255 million, backed by a surge in debt buying in New Zealand and Australia and higher lending in the same region. During the six-month period ended 31 December 2023, consumer lending book of CCP jumped 16% YoY to AUD 414 million and net profit after tax (NPAT) pre-impairment increased to AUD 33.5 million.

Top 10 shareholders of CCP

The top 10 shareholders of CCP have around 47.72% shareholding in the company. Bennelong Australian Equity Partners Pty. Ltd. and AustralianSuper have the maximum stake in the company with a shareholding of 14.03% and 7.61%, respectively.

Recent business update

Through an ASX update dated 1 May 2024, the company notified that Mitsubishi UFJ Financial Group, Inc ceased to be a substantial holder in the firm on 26 April 2024 with the decline in shareholding below 5%.

Outlook

The company had revised its forecast for FY24 in January 2024 to incorporate a ledger investment between AUD 230 million and AUD 250 million.

As per the updated guidance, net lending is expected to fall in the range of AUD 140 – 150 million, NPAT is expected in the range of AUD 80-90 million and statutory NPAT in the range of AUD 35-45 million. In FY24, the expected range of earnings per share is 51 – 61cents.

Share performance of CCP

CCP shares closed 0.26% higher at AUD 15.580 apiece on 6 May 2024. In the last one year, CCP’s share price has decreased by 11.02%, while in the last six months, it has increased by 27.39%.

The 52-week high of CCP is AUD 23.79, recorded on 31 July 2023, while the 52-week low is AUD 11.49, recorded on 18 October 2023.

CCP Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 06 May 2024. The reference data in this report has been partly sourced from REFINITIV.