ASX 200 (XJO) up 1%, Credit Corp (CCP) soars

The ASX 200 (ASX: XJO) is up around 1% as the share market continues its volatility.

Republicans in the US has just proposed a US$1 trillion plan to help the US economy. It would include US$1,200 to most Americans, however, the weekly $600 unemployment benefit supplement would be reduced to $200. Republicans say that the current benefits discourage people from returning to work.

Credit Corp (ASX: CCP) shares soar

The Credit Corp share price is up more than 10% after the debt collector released its FY20 result.

Credit Corp had already given investors a bit of an insight into what it was expecting to report earlier this month.

Today, the debt collecting business announced that its net profit after tax for FY20 was $15.5 million, down 78%, which included impairment of purchased debt ledger (PDL) assets and additional provisioning from COVID-19 impacts.

Those impairments reduced Credit Corp’s reported net profit by $64.1 million.

Net profit after tax before those accounting adjustments was $79.6 million, 13% above the prior year.

Credit Corp said that it’s not going to pay a final dividend for FY20, but it does expect to resume dividend payments in 2021 assuming its capital position and investment outlook is satisfactory.

The company gave some profit guidance for FY21. For PDL acquisitions it’s expecting between $120 million to $180 million. Net lending volumes are expected to between -$5 million to $5 million. Net profit after tax (NPAT) for FY21 is expected to be between $60 million to $75 million.

Temple & Webster (ASX: TPW) share price rises

The Temple & Webster share price is up 3.3% after releasing some pre-audit FY20 numbers.

Full year revenue was up 74% over the year to $176.3 million. The second half revenue was up 96% and the fourth quarter revenue was up 130%. Clearly these numbers show the company’s growth accelerated at the end of the year due to COVID-19 impacts.

EBITDA (click here to learn what EBITDA means) increased by 467% to $8.5 million, up from $1.5 million a year ago.

The online retailer said that it was cashflow positive during the year and finished with $38.1 million of cash with no debt. This excludes the proceeds from the recent $40 million capital raising.

The number of active customers rose by 77% year on year.

The company said that July’s revenue growth rate is inline with what was experienced throughout the fourth quarter of FY20. As a reminder, that growth was 130%.

Sezzle (ASX: SZL) unveils a partnership

The Sezzle share price is up after revealing a partnership. Sezzle announced its new partnership with Plaid this morning.

Plaid is a company that has a data network which powers the digital tools that millions of people use. According to Plaid, 25% of people with a US bank account have used Plaid to connect to more than 2,600 fintech developers across more than 11,000 financial institutions.

Sezzle said that joining Plaid’s data network gives consumer more security and control over how their financial data is used.

Sezzle consumers will be able to connect their financial account to Sezzle in order to more easily pay using their bank account. The Plaid network will help Sezzle lower its processing costs by facilitating consumer payments through the ‘Automated Clearing House’ system instead of card networks.

Sezzle CEO and Executive Chairman said: “Plaid’s goal of making money more accessible for everyone aligns with our mission of financially empowering the next generation. We are excited to be working with Plaid on the next evolution of Sezzle product offerings, such as Sezzle Up, for our consumers and merchants.”

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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