Insights

Credit Corp (ASX:CCP) share price soars 8% on Radio Rentals acquisition

The company’s shares are on the move.
The post Credit Corp (ASX:CCP) share price soars 8% on Radio Rentals acquisition appeared first on The Motley Fool Australia. –

The Credit Corp Group Limited (ASX: CCP) share price is flying higher today following the company’s acquisition of Radio Rentals.

At the time of writing, the receivables management company’s shares are up 8.41% to $32.75. It’s worth noting that its shares have strongly rebounded after dipping below the $30 mark yesterday, a monthly low.

Credit Corp accelerates growth strategy

Investors are driving up the Credit Corp share price after the company announced the takeover of Australia’s favourite rental company.

In its release, Credit Corp advised that it has entered into a binding agreement to acquire Radio Rentals from Thorn Group Ltd (ASX: TGA).

The purchase price for the appliance leasing business is valued at around $60 million. Credit Corp will tap into its existing cash reserves to fund the acquisition. The purchase is subject to final adjustments and is expected to be completed sometime next month.

Credit Corp CEO, Thomas Beregi commented on the newly acquired business:

Credit Corp provides the cheapest and most sustainable finance to the Australian credit impaired consumer market and our entry into this new segment will be consistent with that approach.

As a result of the newly acquired business, Credit Corp revised its earnings guidance for the 2022 financial year.

The company is forecasting purchased debt ledger (PDL) acquisitions to come in the range of $280 million to $300 million. In comparison, Credit Corp had previously projected $220 million to $240 million for PDL acquisitions.

Furthermore, net lending volumes are anticipated to remain the same, between $45 million and $55 million.

The company’s bottom line, net profit after tax (NPAT) is estimated to lift to $92 million and $97 million. Earlier this month, it assumed NPAT would be about $85 million to $95 million.

Lastly, earnings per share (EPS) is expected to stand at 137 cents to 144 cents. This is an increase from the 126 cents to 141 cents the company originally predicted.

Credit Corp share price summary

Over the past 12 months, Credit Corp shares have gained almost 35%, with year-to-date up around 10%. The company’s share price reached a 52-week high of $34.48 in February, before treading sideways in the following months.

Credit Corp presides a market capitalisation of roughly $2.2 billion, with approximately 67.83 million shares on its registry.

The post Credit Corp (ASX:CCP) share price soars 8% on Radio Rentals acquisition appeared first on The Motley Fool Australia.

Should you invest $1,000 in Credit Corp right now?

Before you consider Credit Corp , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Credit Corp wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: AMP shares jump, Collins Foods impresses

2 financial ASX shares to buy right now: experts

Brokers highly rate these 2 ASX shares

5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!