18/10/2023 16:45

Credit Corp (CCP) $11.97

CCP -30.53%: the debt collector fell to 3-year lows today after taking a knife to asset values and guidance. The company said collection conditions had continued to deteriorate after flagging the higher delinquencies at results in August. As a consequence, the company has reduced the value of their US Purchased Debt Ledger (PDL) assets by $45m.

Read more

01/08/2023 16:33

Credit Corp (CCP) $20.63

CCP -12.58%: the debt collection company kicked off reporting season today with a largely disappointing update regarding guidance. FY23 though was broadly in line with revenue of $473m and the dividend of 70cps both slightly beating consensus and Net Profit of $91.3m a slight miss.

Read more

21/07/2023 09:07

Credit Corp Group Ltd (CCP) $23.11

CCP kicks off reporting season on the 2nd of August with the market clearly looking for good things from the debt collection company. With the “mortgage cliff” about to hit Australia through 2H we feel there’s a good chance of an increase of debt to be purchased while the strong employment data suggests defaults won’t blow out as many had expected in 2023.

Read more

16/05/2023 09:15

Credit Corp Group Ltd (CCP) $16.90

Debt collection company CCP has already fallen -16.7% this financial year but with interest rate hikes starting to bite the consumer we believe debt ledgers will become more readily available as people struggle with rising repayments across their various borrowings i.e. we have all heard about the “mortgage cliff” about to unfold in Australia.

Read more

01/02/2023 17:00

Credit Corp (CCP) $22.00

CP +1.66%: 1H report for the debt collection company was out this morning with the stock initial negative reaction overrun by the session’s end.

Read more

01/12/2022 09:10

Credit Corp Ltd (CCP) $20.14

Debt collector CCP more than halved from its 2021 high but it feels like the weakness which followed its August result, albeit in a falling market, may have washed out the sellers and it looks good ~$20. Importantly from an investment perspective, the result led to weakness as the company guided a lower net income of $90-$97m but on 14.4x FY23 earnings, CCP is still around fair value in MM’s view. While we’re all concerned about economic stress, ironically, one of the issues facing CCP is the availability of bad debts to collect, these are at low levels making them expensive. Bad debts are essentially the company’s inventory. • We like CCP and can see over 20% upside over the coming weeks.

Read more

02/09/2022 09:24

Credit Corp Group Ltd (CCP) $19.56

Debt collector CCP has halved from its 2021 high and while we held a neutral to mildly bullish view through August we didn’t once consider buying the stock’s weakness following its early August result:

Read more

02/08/2022 17:45

Credit Corp (CCP) $23.02

CCP -5.35%: The debt collector reported net income today of $100.7m for FY22, ahead of the $96.6m expected, and a final dividend of 36cps which was inline. The profit result equated to a 14% increase on FY21 so clearly a solid outcome, however, their guidance for FY23 caused some concern, they are guiding to net income of $90-$97m and Purchased Debt Ledger...

Read more

01/07/2022 09:17

Credit Corp Group Ltd (CCP) $20.28

Debt collector CCP has fallen over 39% in 2022 with a test of $20 now feeling almost inevitable i.e. another +10% lower. Sentiment towards the sector is weak given Collection House (CLH) has now fallen into administration, investors will be weighing up if it’s a simply bad space during a recession or whether the removal of a competitor is an opportunity for CCP –  right now we think it’s too close to call.

Read more

30/11/2021 17:19

Credit Corp (CCP) $32.80

CCP  +8.57%: The debt collector upgraded guidance today expecting FY profit of $92-97m which is up from $85-95m thanks to better acquisition of debts. The market was already at the high end of the guidance range ($94.5m) which is understandable given that CCP generally gets there. Using that as a guide today’s announcement was only a ~2% bump however...

Read more