Ann: Preliminary Final Report , page-20

101lucas

While Repcol may have been a good acquisition for some agency, i believe the performance reductions seen with CCP revenue/FTE indicate staffing who were probably not equipped or skilled to deal with a debt ledger which had already been through a debt recovery process with another debt acquisition company.

My impression is through 05/06/07 the company was purchasing large volumes of essentially new debt through forward flow agreements with their vendors. The staff were skilled to recover against these types of debts. Strategically debts which one company has been unable to recovery are going to be harder to collect for the second company also, expecially with a workforce unskilled in that type of action.

This also suggests a requirement to skill develop their existing staff, as the acquired ledgers are aging, new acquisitions are reducing, meaning to maintain revenue they need to maximise the returns on existing assets.

I think 4 months ago they were an absolute bargain. Currently i'd like to see more from the company in terms of announcements on strategic direction before dipping in again. If the guidance for 2010 changes within the next six months positivly i can see this SP moving on towards the 2.50-3.00 mark.