Credit Corp Group have continued to deliver earnings growth and cement their position as the market leader in their field

Credit Corp Group have continued to deliver earnings growth and cement their position as the market leader in their field. The business delivered 18% growth in NPAT and 17% improvement in EPS accompanied by a $.20c interim dividend. Two things that stand out in the result for me were strong purchasing of new debts, this is important because it will impact future earnings. The second point to note was the strong growth in their new lending business. CCP has a track record with dealing with credit impaired customers i.e. people that mainstream institutions won't lend to. The loan book in this part of the business has rapidly grown from $19 million at June to $35 million in December 2013. Whilst this business is in its infancy I would back CCP management to make this new business a meaningful contributor to future earnings. Here is the release (VIEW LINK)