Collection House to Generate $4-5 million Revenue in Services Segment
Within the newly created ‘Government Services Collection Centre’, the group has managed to garner a multitude of new and existing government contracts.
Collection House Group (ASX:CLH), Australia’s leading receivables manager has released a market update, outlining growth within each of their segments.
Within the newly created ‘Government Services Collection Centre’, the group has managed to garner a multitude of new and existing government contracts. For FY17, the group is expecting to generate approximately $4-5milion within this division.
Under the soon to be re-branded consumer services brand “ThinkMe”, the group’s financial brokerage segment has been successful over the last 18 months. According to the group, growth within this segment has remained strong, and is expected to positively contribute to earnings going forward.
Furthermore according to the group, they have been relatively successful within their PDL (Purchase Debt Ledger) acquisitions, further securing transactions during the half, with more being expected.
The search for the appointment of a new CEO is ongoing, with the board expecting to commence formal interviews with a list of candidates within the next 2-3 weeks. The group expects a formal appointment announcement will be made within this financial year. Current Managing Director and CEO Matthew Thomas will be retiring from the company, effective on the 30th of June 2016. However, he will be available to support the transitioning process following the 30th of June.
1% Growth in First Half Revenue
The group reported revenues of $64.6million, equating to 1% growth to the PCP, with NPAT down 26% to the PCP. However, Collection Services revenue was up 20% to the prior half. Over the last five years, the Collection Services segment has been the strongest contributor to earnings. The Group has revised its full year statutory guidance in the range of $15.5-$19.3million, accounting for the once off significant items of $3.4million. On an underlying basis, they expect it to be in the range of $18.9-22.7million.
Moreover, the group previously announced an interim fully franked dividend of 3.9cents per share.
As at 11.07am (AEDT), CLH is up over 5.7%, to $1.11.
Author: Ben Khouri
Apr 26, 2016
Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.