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AUSTRALIA : Collection House Secured $61M Of New PDL Contracts In First Half
Publish Date : 17-Jan-2012
Leading Australian receivables manager Collection House Limited has secured debt purchase agreements tendered during the six months to 31 December 2011 with an estimated investment value of $A61M.
The $61M of commitments to purchased debt ledgers (\"PDLs\") in the first half of FY12 already exceeds the total PDL investment of A$49M in the full FY11 period. CLH has previously advised an FY12 PDL investment target of $60M - $70M.
\"Securing the majority of our FY12 target in the first half leaves us well placed to increase revenue in the second half.\" said CEO, Matt Thomas. \"We have experienced pricing consistent with historic norms while supply levels of consumer debt for sale appear plentiful, so we expect to be able to purchase very selectively in the second half.\"
Amongst PDL commitments made during the first half, five contracts were with organisations which did not sell debt to CLH in FY11, and two were first time sellers.
In an innovative development, consumer electricity and gas accounts were purchased from an energy retailer, being a new market for PDLs that CLH has been researching for some time.
As an established market leader in contingent energy collections, the purchase of energy debt is a logical market opportunity and it is expected that this first Australian energy PDL sale will lead to similar transactions for CLH.
CLH also secured another first during the 1H12, being a forward flow debt sale of Part IX insolvency debt. The commission (contingent) collections segment has also experienced growth during the first half, compared to the previous corresponding period.
Collection House Limited is scheduled to report first half results on 25 February 2012.
