SHARES in the nation's biggest debt collection agency, Credit Corp Group, collapsed yesterday, falling nearly 80 per cent after the company revealed its full-year profit would probably drop by almost 50 per cent.
Less than three months after its first profit warning, Credit Corp revealed that its full-year profit would be slashed by up to $9 million to $10-12 million -- and at least one analyst believes the company will not meet that revised target.
Management blamed the dramatic profit decline on a "substantial proportion" of recent debt ledger purchases failing to meet revenue expectations.
Debt collection agencies make their money from bidding for parcels of bad and doubtful debts, with the aim of recouping more than they paid for them.
Chairman Christopher Deane resigned immediately.
No comments:
Post a Comment