thoughts

I think we all agree that this company is having very Favourable Economic Tailwinds. Its the main reason I'm interested. Awarded the best use of AI by a fintech company in the last 2 years is also pretty impressive.

The Board which is nearly all new, from last year is quite good with nice insider ownership

Paul Dwyer Independent Chairman - co-founder of PSC Insurance Group (ASX: PSI). That is definitely a bonus to have someone like him not so sure of

Hugh Robertson Non-executive Director - Maggie Beer Holdings (director since 2015), Envirosuite Limited (director since 2018), and Touch Ventures Limited (director since 2018) (these 3 companies have had very disappointing performance)

One thing that i cant understand is how this company makes money? Is it from Signing up new customers? Do they receive a percentage of the debt collection?. It really gives very little information in the Annual report (collections $29.7m legal service 5.2m that is how they break it up) i've never heard them say anything specifically in a presentation. I think it is pretty important to know. How much of it would be classed as recurring? How much just one off by sending messages? The most information i found is from the Prospectus below

Transactional platform income Based around Credit Clear’s proprietary technology platform, the Company generates income from providing a communication and payment platform service to the underlying customers of its clients. Credit Clear charges between $0.10 and $0.30 per communication sent to customers whilst also charging clients between $0.03 and $1.50 per active account managed. Credit Clear also charges success, integration and payment gateway fees.

Receivables Management income Based on the income Credit Clear currently generates from its traditional Receivables Management business, fee types associated with these services are generally: • “Fee for service/activity” where an activity may also be a group of activities; • Hourly/Daily/Weekly or monthly fees associated with resource overflow programs or insourcing; and • Contingent/commission recovery – where fees are charged as a percentage of successful recovery. Rates for contingent/commission recovery are on average 10-15% and may vary depending on the relative complexity and debt profile. Currently, Receivables Management income represents approximately 62% of the total revenue of the Group.

Legal services income Legal services income includes court scale rates for various litigation activities as well as hourly rates that vary depending on the seniority of the solicitor.

The company seems to promise so much but doesnt actually perform. The only margins they talk about is Digital revenue has a gross margin of ~80% what about company margins or other divisions? I find the guidance of double digit revenue growth and underlying EBITDA of between $1m and $2m pretty disappointing. With all the contracts that should be onboarded and the booming market it should be looking better.

I will email the company at some stage just Interested to hear what other people think?

@madamswer this is a company that you own. Do you have some thoughts?