Dear PeriPlease dont be so grumpy, your attitude seems to be...

Dear Peri
Please dont be so grumpy, your attitude seems to be distorting your view of reality.
Some of us have been in CCP since the float. We have seen brilliant returns (a twenty bagger) a SP collapse and then growth and stability, which is where we are now.
This is a brilliant set of results which has come about through hard work and corporate discipline. If you go and take a look at the last say five years you will find that under GL (and that does not stand for good luck) the company used it rich cash flow to leverage up big time and that got them into well to put it mildly, some trouble. The last two years have been about stabilising the business by paying down debt, squeezing the older debt ledgers a bit harder and gradually building up both staff numbers and competence. What you are looking at in these numbers isnt as you infer some sort of game its the results of a disciplined management approach to running the business.
The $40m cash flow is sustainable because that is what they produce. Its as easy as that.
One of the keys to this business is not to get too greedy and become the victim of pressures to put a lazy Balance Sheet to work. They have been down that track and failed. It was a hard lesson leaned by all of us. The problem with leverage is that it serves you well during good times but when the tide turns, circumstances can bring you undone and then theres not much you can do about it. The objective for CCP is to get the right balance between too much and too little debt. Similarly a trick is to get the right balance between focussing their efforts on older debt which is harder to collect, but you have already paid for, and new debt which is easier to collect but you have to spend money on.
An interesting thing about the credit collection business is that it does better during periods of economic prosperity than during recessions. The reasons for this are that during good times the people who overextended themselves, have a greater chance of getting access to personal cash flow, such as jobs, to pay back what they previously borrowed. In recessionary times, empty personal pockets result in empty corporate pockets. And, OZ as you know is in good times because it is well and truly hitched to Chinas prosperity. While that situation lasts, much of Australia, including CCP will continue to prosper.
Congrats to all of the team at CCP all of the hard work and the great job on you are doing.
K