Shares in Credit Corp surged to a two-week high on a profit upgrade and strong first-half result

Shares in Credit Corp surged to a two-week high on a profit upgrade and strong first-half result. An 18% jump in the debt collection group's net profit to $17.2 million on the back of a 25% increase in revenue to $84.1 million. The result was comfortably ahead of consensus forecasts for net profit and sales of $16.2 million and $78.2 million,. What also got investors excited was its full-year guidance lifting net profit estimates for 2013-14 to between $33 million and $35 million compared with November's guidance of $31 million to $33 million. Standouts in the result were strong purchasing of new debts ledgers and the strong growth in their new lending business where the loan book as rapidly grown from $19 million at June to $35 million in December 2013. The question is can CCP hold onto margins as debt books become increasingly expensive putting pressure on margins. (VIEW LINK)


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