Pinned straw:
NPAT fell by 5 per cent over the prior year to $91.3 million. While lending segment earnings grew strongly, the impact was offset by continued run-off in the core AU/NZ debt buying business and costs arising from increased US resourcing.
Conclusion:
FY23 earnings were 5% lower on FY22, as rising wage costs and lower labour productivity more than offset a 15% growth in revenue. Nonetheless, the results were in line with consensus expectations. However, management's FY24 earnings guidance is ~10% below consensus expectation.
Share price reaction down ~ 11% ...Good for ones looking to purchase some more.
lankpom, Oh which compounders on you're list.
CCP: languishing in recent times maybe out off the 'compounders list "
Return (inc div) 1yr: -11.69% 3yr: 5.42% pa 5yr: 1.45% pa
Vs
CPU: Has performed : ROE looks a better trend
Return (inc div) 1yr: 1.78% 3yr: 27.06% pa 5yr: 10.00% pa
an ability to raise subscriptions
MMS, SIQ,
Insurance
SDF: Return (inc div) 1yr: 11.75% 3yr: 23.39% pa 5yr: 18.01% pa
SDF Steadfast Group Limited (SDF) provides services to steadfast Network brokers, distribution of insurance policies via insurance brokerages and underwriting agencies, and related services
Maybe Staples WOW,COL,
noted: BBN has been a been a shocker. Maybe they turn around
lankpom, Oh which compounders on you're list.
CCP: languishing in recent times maybe out off the 'compounders list "
Return (inc div) 1yr: -11.69% 3yr: 5.42% pa 5yr: 1.45% pa
Vs
CPU: Has performed : ROE looks a better trend
Return (inc div) 1yr: 1.78% 3yr: 27.06% pa 5yr: 10.00% pa
an ability to raise subscriptions
MMS, SIQ,
Insurance
SDF: Return (inc div) 1yr: 11.75% 3yr: 23.39% pa 5yr: 18.01% pa
SDF Steadfast Group Limited (SDF) provides services to steadfast Network brokers, distribution of insurance policies via insurance brokerages and underwriting agencies, and related services
Maybe Staples WOW,COL,
noted: BBN has been a been a shocker. Maybe they turn around
I've held CCP for almost a decade, and viewed them as a low-risk compounder, but with the latest disappointing result I no longer have any conviction that this company has a meaningful growth opportunity ahead of it. The narrow moat that is theoretically afforded by its operating scale and efficiency does not seem to translating to growing profit. Maybe it is enough to keep them in business whilst competitors like Collection House fall by the wayside. But it is not enough to keep me as an investor. I don't think that a business which is benefiting from the financially distressed sits comfortably in my portfolio. I see more attractive opportunities in businesses which are providing a societal benefit, Resmed coming to mind at the moment.
So after a long relationship, sadly I'm out.