Ho hum, ho hum, another boring update to say that things are...

Ho hum, ho hum, another boring update to say that things are progressing swimmingly. I love boring companies, particularly those in odious market sectors, and debt collectors score well on the odium ratings.

I am surprised that loans have expanded, particularly as CCP has exited the SACC- and MACC-loans business as a response to the anti-business jihad waged by interfering do-gooders. The irony is that CCP was the cheapest source of small- and medium-sized loans, and this irony would not have escaped Treasury's notice. I thought that investment in profit-generating assets would be switched to PDLs. The provisioning of the loan expansion may have inclined management to keep the NPAT and EPS forecasts steady, but this is one of those good-news-is-bad-news paradoxes that belie the health of CCP's business. However, the better quality loans now made should lower the up-front provisioning.

Since FY2012, CCP's actual NPAT and EPS performance has always eclipsed the mid-point of the guidance range forecast, and for two of the four years, FY2013 and FY2015, it exceeded the upper limit. The updated EPS guidance is 95c to 97c, so I expect the actual EPS to be a bit above 96c. New guidance is not given for DPS, but since FY2012 it has always eclipsed the initial guidance upper limit by between 2c to 5c. DPS guidance currently stands at 44c-46c, so on past history, I expect 48c. The increased use of debt funding, and growth expected in income-generating assets in FY2017, would, I suspect, dissuade management from increasing the DPS by more than 2c.

Growth of EPS and DPS in FY2017 should, I suspect, be at least 10%.