The Credit Corp Group Ltd (ASX: CCP) share price is having a day to remember on Tuesday.
In morning trade, the debt collector's shares are up over 16% to $17.80.
This follows the release of the company's full year results before the market open.
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Credit Corp share price jumps on results day
- Revenue up 5% to $545.6 million
- Net profit after tax (pre-impairment) up 16% to $94.1 million
- Net profit after tax up 86% to $94.1 million
- Dividends per share up 79% to 68 cents
What happened in FY 2025?
For the 12 months ended 30 June, Credit Corp reported a 5% increase in revenue to $545.6 million. This was driven by a 14% lift in US debt buying revenue to $125.9 million and a 12% increase in Australian/New Zealand lending revenue to $199.8 million, which offset a 5% decline in ANZ debt buying and collection services revenue to $219.9 million.
On the bottom line, net profit after tax (pre-impairment) was up 16% to $94.1 million.
Including the impairments it made to its US business in FY 2024, net profit after tax was up 86% to $94.1 million.
This allowed the Credit Corp's board to declare a fully franked final dividend of 36 cents per share, which lifted its full year dividend by 79% to 68 cents per share.
Commenting on the 12 months, Credit Corp's managing director and CEO, Thomas Beregi, said that the company has focused its US investment in recent periods on the acquisition of lower balance, shorter collection duration credit card receivables. He adds:
We have diversified our purchasing across a range of sellers while focusing on lower balance products to improve cash conversion metrics and shorten the duration of our US book while conditions remain uncertain.
Outlook
Looking ahead, management believes that it is well-placed for strong earnings growth thanks partly to a record US debt ledger investment pipeline.
It is guiding to net profit after tax of $100 million to $110 million in FY 2026. The midpoint of this guidance range implies an increase of 12% year on year.
This is based on forecast purchased debt ledger acquisitions of $280 million to $330 million (27% growth at the midpoint) and gross lending volumes of $350 million to $390 million.
Following today's gain, the Credit Corp share price is now up over 20% since this time last month.
