Credit Clear achieves cash flow positive status in first quarter of new financial year
Credit Clear 报告了 9 月季度的创纪录收入 890 万澳元。
The first quarter of the new financial year has seen Australian receivables management solution provider Credit Clear (ASX: CCR) achieve cash flow positive status, generating $531,000 from its operating activities.
Underpinning the cash flow positive period, was record revenue of $8.9 million. The figure represents a 162% jump on the previous corresponding period.
The quarterly result was driven in part by a rapid growth in high-gross margin digital payments, which totalled $15.3 million and represented an increase of 19% on the June quarter and 101% on the previous corresponding period.
Credit Clear said a continued focus on identifying and managing unprofitable clients as well as growth from existing clients also improved profitability.
Cost savings and efficiencies from the integration of its collection and legal businesses are expected to be realised this financial year.
New clients
Credit Clear signed a record 99 new clients during the quarter, representing a 66% increase on the previous period and bringing an expected $3.4 million in additional revenue over the next 12 months.
The clients come mostly from the insurance industry through expanded existing relationships and the addition of large new insurers to Credit Clear’s database.
Total expected additional annual revenue from new clients since January 2022 sits at $12.57 million.
Credit Clear has also made progress in the South Africa market space and is expected to ramp up activity over the next quarter with further deployment of its digital platform across significant portfolios of debt.
In the UK, the company reported good progress with a potential joint venture partner and associated collection agency.
Industry awards
During the quarter, Credit Clear gained recognition at the Australian Fintech Awards for its use of artificial intelligence software in the debt collection industry.
The company’s awards submission highlighted the efficiency of its software platform, which delivered a 35% uplift in collections in May and June for one of Australia’s largest toll road operators.
Credit Clear was also named as a start-up finalist in this year’s Australian and New Zealand Institute of Insurance and Finance industry awards for its digital third-party claims system, developed in collaboration with a large Australian insurer.
The completely digital (no human contact) solution has been shown to improve engagement and collection rates.
It can also significantly reduce recovery times and improve customer experiences for third-party claimants.