Ann: Preliminary Final Report , page-18

persistentone

I think anyone who has followed this stock for some time, reviewing the operational model should compare the cost ratios from the 05 FY, where the company was significantly profitable compared to the current position. The basic metrics i use i've set out below:

http://www.creditcorp.com.au/irm/content/investors_annualreports.html

05
Revenue: $50,340,000
Net Profit: $8,169,000 (16.22%)
Employee Expenses: $9,501,000 (18.87%)
No Staff: 80
Revenue PFTE: $629,250

09
Revenue: $155,800,000
Net Profit: $10,700,000 (6.87%)
Employee Expenses: $35,009,000 (22.47%)
No Staff: 435
Revenue PFTE: 358,160

I have other primary issues with the current business model from their reporting, being if 65% of their revenue is coming from repayment agreements, being 101,270,000, which would essentially be rolling revenue, aside from the creation of these repayment agreements, what are their 435 staff doing on a daily basis to generate the other 54,530,000 or 125,356 per FTE, or 10,446 per month per FTE.

This is of course only my opinion, however i think that, while they are centainly getting a number of things right, there still seems to be some areas of concern in respect to their operational structure that i believe, if addressed, would see a significant shift in a revenue:cost ratio.

If they can achieve this then, as i've saif before, i think this is an excellent stock.