Diversified financial services company Credit Intelligence (ASX: CI1) has posted a 355% increase in half-yearly profits after tax to $1.258 million, on the back of a 116% increase in revenue.
The company’s results to 31 December also reflected a 333% increase in earnings per share and a boosted cash flow from operations of $777,516, compared to $230.984 for the previous corresponding period.
The profit after tax was 5% higher than a profit alert estimate earlier this year of around $1.2 million and takes into account a $190,000 non-recurring transaction cost related to a majority acquisition in September of Singapore financier Hup Hoe Credit Pte Limited.
HHC is a registered money lender established in 2014 to provide personal loans to Singaporeans and foreign residents.
Credit Intelligence funded the purchase through the issue of 80,990,951 fully paid ordinary shares and a cash payment of $1,235,294.
ICS funding Pte Ltd – acquired in June – was also reported to be performing well and on track to exceed Profit Guarantees for the periods to 30 June and 30 September 2020 respectively.
Credit Intelligence managing director Jimmie Wong was pleased with the company’s results.
“We are delighted with the half-year performance, and particularly with the performance of our new Singapore acquisitions,” he said.
“We are working tirelessly to build on this in the year ahead in growing our existing businesses and with an acquisition in Australia.”
Mr Wong said potential acquisitions in Australia and New Zealand would strengthen the company’s operating base.
Credit Intelligence’s Hong Kong bankruptcy and individual voluntary arrangement business results also improved year on year with increased revenues and a reduction in operating costs.
“Our core business continues to trade well in the current social and political unrest in Hong Kong, and more recently the adverse economic impact of [coronavirus],” Mr Wong said.
“These adverse events are expected to result in further growth for the balance of the calendar year.”
The Hong Kong business is counter cyclical to current economic conditions, meaning profitability increases more quickly in economic downturns and uncertainty.
Credit Intelligence today announced the appointment of Sydney-based banker Mark Paton to the role of independent non-executive director.
Mr Paton has considerable experience in banking and financial markets including 10 years with ANZ Banking Group as group managing director (corporate), and 15 years with Westpac Banking Corporation.
He was previously the chairman of Foundation for Young Australians and is presently managing director of AFSG Capital Pty Ltd.
Mr Paton holds a Masters of Banking Management from Macquarie Graduate School of Management Sydney, is a fellow of the Australian Institute of Banking and Finance, and a member of the Australian Institute of Company Directors.
In addition to the non-executive role, he will chair the Credit Intelligence audit and risk committee.