Credit Corp ((CCP)) has impressed brokers with the growth rates in its debt purchasing business over recent years, having grown earnings per share at a compound rate of around 10% as well as diversified its business.
In the past we have regularly commented on the fact that Credit Corp Limited (ASX: CCP) management has generally been conservative when providing initial guidance on the year ahead. If you are interested in our past thoughts, our last four updates can be found by clicking on the links below:
FY19 results were in line with expectations. Net profit guidance of $75-77m is below Morgans’ original forecasts but appears conservative. The broker expects FY20 will benefit from earnings uplift in the US and an increase of 16% in the consumer lending book as well as significantly lower debt.
Morgans does not believe there are any legitimate concerns raised from the recent anonymous report published on Credit Corp. The broker suggests, despite the attempt to damage the company’s reputation, it is unlikely the risk of access to funding has increased.