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COLLECTION HOUSE LIMITED (CLH)


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General Information
Company Name: Collection House Limited
Stock Code: CLH
Website: www.collectionhouse.com.au
GICS Sub-Industry: Diversified Commercial & Professional Services
Market Cap ($M): 171
Equiv. Shares (M): 115

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.495 $ 1.545 $ 1.550 $ 1.480 $ 1.535 359,323 $ -0.040  -2.606 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 24th Aug 2012
12 Month Target Price (average): $1.01
Brokers Surveyed: 1

Company Overview

Business Description:
Collection House Limited (CLH) is an Australian receivable management provider, operating in Australia and New Zealand. CLH’s core businesses include: Purchased Debt; Commission Collections; Cash Flow Management; and Specialist Services such as legal and insolvency services, and credit management related training.

Strategy Analysis:
CLH's strategy for growth includes acquiring a greater share of the debt collection outsourcing, ledger purchasing and credit reporting markets. Management has identified an increasing emphasis by clients on the protection of their brand. CLH is addressing this through increased focus on business conduct and adhering to ethical and compliant debt collection. Collection House had identified purchased debt as the key growth area in debt collection and is the biggest buyer of impaired debt in Australia and New Zealand.

Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  A 12.7 12.2 18.4 6.3 6.4 8.3 100.0
2011  A 10.1 10.3 13.2 7.0 6.1 8.4 100.0
2010  A 8.9 9.1 26.4 7.6 5.8 8.4 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
Brambles (BXB) $14,794 M 0.2302 0.1198 0.0842 23.0919 20.6208 19.0190 0.0274 0.0300 0.0322
Collection House (CLH) $177 M 0.1844 -- -- 12.5820 -- -- 0.0417 -- --
Downer EDI (DOW) $1,621 M -0.3684 0.1464 0.0686 8.8000 7.6765 7.1840 0.0000 0.0546 0.0670
Mineral Resources (MIN) $1,633 M 0.1078 0.0343 0.2652 9.1621 8.8579 7.0010 0.0524 0.0558 0.0683
McMillan Shakespeare (MMS) $1,219 M 0.2107 0.1166 0.1833 22.0783 19.7728 16.7092 0.0287 0.0315 0.0373

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
CLH 0.56 12.2 1.47 -- 1.22
Market 1.08 12.7 0.89 1.87 2.60
Sector 0.66 10.84 1.14 1.11 0.52

Directors
Name Position Start Date
Mr Matthew Thomas Chief Executive Officer,Managing Director 31 July 2010
Mr Dennis George Punches Deputy Chairman 17 July 1998
Mr David Paul Liddy Non-Executive Chairman,Non-Executive Director 27 March 2012
Mr Kerry John Daly Non-Executive Director 30 October 2009
Mr John Marshall Pearce Non-Executive Director 05 April 1993
Mr Anthony (Tony) Francis Coutts Non-Executive Director 17 September 1998
Mr David Michael Gray Non-Executive Director 28 June 2011
Mr Barrie Adams Non-Executive Director 03 December 2002

Management
Name Position
Adrian Ralston Chief Financial Officer
Julie Tealby Company Secretary
Michael Watkins Company Secretary
Kylie Lynam General Manager, Human Resources and Corporate Services

Substantial Shareholders
Holding Name
11,895,190 (10.99%) J M Pearce
19,452,535 (17.98%) Punches, Dennis G
10,218,910 (9.45%) Trans Tasman Collections Investments Pty Ltd
9,628,246 (8.90%) Lev Mizikovsky and Ankla Pty Ltd

Calendar of Events
Date Event
30 January 2014 Report (Interim)
20 September 2013 Report (Annual)
22 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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