Australian Collection Agency Reports Big Gains in Turnaround

Australian accounts receivable management firm Collection House reported a 95 percent increase in profits for its fiscal year 2008, ended June 30, 2008. The company said that the results were due to a renewed focus on debt buying and collections.

The company said that underlying profits increased 95 percent to A$7.4 million in the year. Revenues increased 17.7 percent to A$95.5 million.

Collection House's Chief Executive Officer Tony Aveling said the substantial improvement in performance reflected the impact of several factors relating to the company's strategy of focusing on its core business.

“During the period, Collection House profitably disposed of several non-core subsidiaries, made record debt purchases, reduced corporate overheads and had notable success in attracting and retaining significant numbers of quality Customer Service Officers,” Mr Aveling said.

Collection House reported that it spent A$71.2 million on debt purchases in the year, up 150 percent from its fiscal year 2007. The company also sold off several non-core units in the past 18 months such as a claims processing unit and a business research division.

Collection House said that it now employs some 560 people in 10 locations in the Australasia area.