12 February 2014Continued earnings growth, despite strong...

12 February 2014
Continued earnings growth, despite strong investment in growth strategies
The leading ASX Listed full service receivables manager Collection House
Limited (ASX Code: CLH) today reported a 16.2% increase in Net Profit After Tax
to $9.4m for the first half of FY14 as compared to the previous corresponding
period.
Despite strong investments in growth strategies made during the first half,
Collection House held its EBIT Margin at 31% (31% 1H13), while reducing
gearing to 37% and improving Return on Equity to 13.2%.
An interim fully franked dividend of 3.9 cents per share was declared, being a
8.3% increase on the previous interim dividend (3.6 cents).
The Dividend Re-investment Plan will be operative in respect to this dividend and
the share dividend price will be discounted by an attractive 5%.
Diversified sources of growth
Managing Director and CEO, Matt Thomas, said that total revenue from
Purchased Debt Ledgers combined with Collection Services had improved period
on period by 10%. Collection Services revenue increased by 14.4%, benefiting
from investments during 2013 in people and client engagement.
The Purchased Debt Ledger revenue grew 6.5% from 1H13, despite some
temporary operational challenges faced due to the major overhaul of the
Controller collection software platform (Project C5). The upgrade is the result of
three years of internal development, which is expected to deliver measurable
benefits in the months and years ahead.
Additionally, increased PDL investments ($38.4m invested in period) with almost
the same amount contracted in 2H14 (investment now expected to be $75-90m
over the full year), demonstrate an accelerating buying program as our stronger
capital position is put to work to capture market share and enhance returns to
shareholders.