They are risking up at an interesting time. Net debt on balance sheet is up to $270m from $100m.
Market is forecasting a repricing of used cars, and a big increase in the cost of servicing and repairs - would be good to know how their car lending portfolio is looking - they mention they are throttling back on it (I think I saw).
Their return/margin this half on the ave PDL assets fell to 43%, excluding H2 2020 that is easily their worst return since 2014 when I started to track it. That return is before operating expenses, staffing costs etc, could be impacted by timing of adding the PDLs to the portfolio, but has the most to do with the quality of the PDL portfolio. They may have bought some dogs. First year collection at 26% worst since 2014 - another possible sign of a poor portfolio acquisitions.
I suspect the market may gradually judge the performance of the PDL side of the business harshly - but we shall see.
CCP Price at posting:
$21.45 Sentiment: Sell Disclosure: Held
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