Credit Corp Group Limited (CCP)



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General Information
Company Name: Credit Corp Group Limited
Stock Code: CCP
Website: www.creditcorp.com.au
GICS Sub-Industry: Diversified Support Services
Market Cap ($M): 447
Equiv. Shares (M): 46

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 9.700 $ 9.750 $ 9.750 $ 9.410 $ 9.700 100,792 0%

Current Broker Consensus Recommendation more
Recommendation: Buy (1.6667)
Recommendation Date: 19th Sep 2014
Brokers Surveyed: 3

Company Overview

Business Description:
Credit Corp Group Limited (CCP) is an Australian receivables management company, specialising in debt purchase and debt collection services, primarily focusing on the acquisition of purchased debt ledgers (PDLs) comprised of distressed consumer debt from Australian and New Zealand banks, finance companies, and telecommunication companies. CCP has a recent expansion to USA.

Strategy Analysis:
CCP has implemented a number of initiatives to improve performance. Competitive advantage comes through the strong relationships with domestic credit providers, and a large database of debtors which improves the analysis needed in tender pricing ledgers. CFO Todd Vogel resigned on 14 September 2010. Management has announced their intention of expanding collections in 2011, together with continued in-house technological innovation to improve collection effectiveness and efficiency. Credit Corp Group reported NPAT up 28% to $16.72m for the half-year ended 31 December 2012. Revenues from ordinary activities were $71.73m, up 12% from the same period last year. Diluted EPS was 36.5 cents compared to 28.7 cents last year. The net operating cash inflow was $78.37m compared to an inflow of $65.6m in the pcp. The interim dividend declared was 20 cents compared with 13 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  A 34.8 75.4 8.0 12.3 40.0 4.3 100.0
2013  A 32.0 69.8 19.5 11.4 37.0 4.6 100.0
2012  A 26.6 58.4 24.5 8.3 29.0 6.0 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Credit Corp Group (CCP) $447 M 0.0812 0.0882 0.1094 12.8596 11.8177 10.6523 4.12 4.22 4.63
Spotless Group Holdings (SPO) $2,015 M -- 1.7032 0.1432 39.4624 14.5982 12.7697 0.00 0.00 4.96
Veda Group (VED) $2,105 M -- 0.3124 0.1598 35.6633 27.1739 23.4302 1.60 2.42 2.79

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
CCP 0.57 12.6 2.80 1.28 2.57
Market 1.00 15.6 1.28 1.72 1.54
Sector 0.78 13.5 1.45 1.28 0.77

Directors
Name Position Start Date
Mr Richard J Thomas Non-Executive Director 22 September 2006
Mr Simon Calleia Non-Executive Director 05 May 2000
Mr Robert Fitz-Gerald Shaw Non-Executive Director 31 March 2008
Mr Eric Dodd Non-Executive Director 01 July 2009
Ms Leslie Martin Non-Executive Director 20 March 2014
Donald Evan McLay Non-Executive Director,Non-Executive Chairman 31 March 2008

Management
Name Position
Michael Eadie Chief Financial Officer
Michael Eadie Chief Financial Officer,Company Secretary
Matthew Angell Chief Operating Officer
Geoffrey Templeton Company Secretary
Thomas Beregi Company Secretary,Chief Executive Officer, Chief Financial Officer
Kristina White Head of Business Services

Substantial Shareholders
Holding Name
5,984,674 (13.03%) Denver Investment Advisors LLC
2,985,731 (6.50%) Vinva Investment Management
2,351,062 (5.12%) Georgia Division Of Investment Services

Calendar of Events
Date Event
04 August 2015 Report (Annual)
04 August 2015 Report (Prelim)
29 January 2015 Report (Interim)
03 October 2014 Div Pay Date
29 September 2014 Report (Annual)
26 September 2014 Books Close
24 September 2014 Div Ex Date
© 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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