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CREDIT CORP GROUP LIMITED — Capital/Financing Update 2021
Nov 29, 2021
64622_rns_2021-11-29_d1f9063a-8474-489c-bee8-0e806807f4c4.pdf
Capital/Financing Update
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Credit Corp Group Limited ABN 33 092 697 151
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Level 15, 201 Kent Street GPO Box 4475 Sydney NSW 2001 Phone +61 2 8651 5000 Fax 1300 483 926 www.creditcorp.com.au
30 November 2021
Credit Corp to acquire assets of Radio Rentals from Thorn Group and revises 2022 guidance
Credit Corp Group Limited (Credit Corp) announces today that it has entered into a binding agreement to acquire the assets of the Radio Rentals appliance leasing business from ASX listed Thorn Group Limited (Thorn) for a total consideration of approximately $60 million.
The total consideration is subject to completion adjustments and will be funded from existing cash reserves. The transaction is expected to complete in December 2021.
Most of the consideration is attributable to the existing lease receivables book, which is expected to produce Credit Corp’s targeted investment return. In addition to the existing lease receivables, Credit Corp is acquiring the intellectual property, systems and supply chain arrangements of the, now online, Radio Rentals business. The acquisition of part of these assets is initially in the form of an economic participation.
Post-closing, the business operations will transition to Credit Corp. A number of Thorn staff will initially support the transition and thereafter many are expected to be offered employment with Credit Corp.
Mr. Thomas Beregi, CEO of Credit Corp, commented that Credit Corp had plans to commence operations in the online retail by instalment segment and the Radio Rentals acquisition provided an excellent platform from which to accelerate those ambitions. “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” he said.
Revised 2022 guidance
The transaction lifts Credit Corp’s investment and earnings guidance for 2022, while providing additional momentum for increased growth in 2023.
Revised 2022 guidance is summarised as follows:
| Previous Guidance(4 November 2021) | Revised Guidance(30November 2021) | |
|---|---|---|
| PDL acquisitions | $220 - $240m | $280 - $300m |
| Net lending volumes | $45 - $55m | $45 - $55m |
| NPAT | $85 - $95m | $92 - $97m |
| EPS | 126 - 141 cents | 137 - 144 cents |
This ASX release was authorised by the Company Secretary.
For more information, please contact: Mr Thomas Beregi Chief Executive Officer Tel: +61 2 8651 5777 Email: [email protected]
Mr Michael Eadie Chief Financial Officer Tel: +61 2 8651 5542 Email: [email protected]