Announcement • Dec 17
Credit Corp Group Limited (ASX:CCP) proposed a non-binding indicative proposal to acquire Humm Group Limited (ASX:HUM) for approximately AUD 380 million. Credit Corp Group Limited (ASX:CCP) proposed a non-binding indicative proposal to acquire Humm Group Limited (ASX:HUM) for approximately AUD 380 million on November 19, 2025. A cash consideration valued at AUD 0.77 per share will be paid by Credit Corp Group Limited. As part of consideration, (i) a proposed scheme of arrangement at AUD 0.77 per hummgroup share in cash (less any dividends or distributions declared after 19 November 2025); or alternatively, (ii) should the scheme of arrangement be unsuccessful, an off-market takeover offer at AUD 0.72 per share in cash (less any dividends or distributions declared after 19 November 2025), conditional upon Credit Corp achieving acceptances for 50.1% of hummgroup's shares. Directors are committed to acting in the best interests of all hummgroup shareholders and are open to supporting a proposal that they believe represents appropriate value for shareholders.
The proposal is subject to numerous conditions, including satisfactory completion of due diligence, final Credit Corp Board approval, negotiation of binding transaction documents, unanimous recommendation by hummgroup's Independent Board Committee, regulatory approvals and finalization of Credit Corp's financing arrangements. No binding agreement exists between hummgroup and Credit Corp, and there is no certainty that any transaction will proceed. The Board has informed Credit Corp that it is willing to engage on the proposal and has offered to provide due diligence, subject to settling a market standard non-disclosure agreement. hummgroup shareholders do not need to take any action at this time.
Flagstaff Partners Pty Ltd acted as financial advisor for Humm Group Limited. Macquarie Capital Limited acted as financial advisor for Credit Corp Group Limited. Announcement • Sep 23
Credit Corp Group Limited Announces Ewen Crouch Withdraws His Acceptance of Appointment to Join the Board The Board of Credit Corp. Group Limited advised that Mr. Ewen Crouch has now withdrawn his acceptance of the appointment to join the Board. Mr. Eric Dodd will continue in his role as Chair while the Board commences a process to identify a replacement Non-Executive Director and Chair. Mr. Crouch has expressed his appreciation to Mr. Eric Dodd and the Board for their flexibility and understanding. Board Change • Dec 30
High number of new directors Independent Non-Executive Director Sarah Brennan was the last director to join the board, commencing their role in 2024. Board Change • Oct 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Executive Director Sarah Brennan was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Sep 10
Credit Corp Group Limited Announces the Appointment of Sarah Brennan as Non-Executive Director The Board of Credit Corp. Group Limited announced the appointment of Ms. Sarah Brennan as a Non-Executive Director. Sarah joins the Credit Corp. Board after a successful executive career in financial services and substantial Board experience in both private and public companies. The company also noted that the appointment of Sarah Brennan continues the process of Board renewal that has seen 6 of 7 current Non-Executive Directors appointed within the last 5 years. Sarah Brennan currently serves as a Non-Executive Director on the Boards of Netwealth, Argo Infrastructure and NobleOak Life. Sarah previously served on the Board of Mortgage Choice and other unlisted Boards in the field of wealth management. Sarah founded her own consultancy, Comparator Business Benchmarking, which was later acquired by CoreLogic. She previously held senior positions in life and wealth management at MLC, Citibank and Deutsche Bank, including a period as COO of Asia Pacific Private Clients and Asset Management at Deutsche Bank. Sarah holds a Bachelor of Arts and a Graduate Management Diploma. Sarah is a Graduate Member of the Australian Institute of Company Directors (AICD) and is a Fellow of the Financial Planning Association of Australia (FPA). Upcoming Dividend • Sep 09
Upcoming dividend of AU$0.23 per share Eligible shareholders must have bought the stock before 16 September 2024. Payment date: 27 September 2024. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of German dividend payers (4.9%). Lower than average of industry peers (4.4%). Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to €8.50, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 7x in the Consumer Finance industry in Europe. Total loss to shareholders of 50% over the past three years. Declared Dividend • Aug 02
Final dividend of AU$0.23 announced Shareholders will receive a dividend of AU$0.23. Ex-date: 16th September 2024 Payment date: 27th September 2024 Dividend yield will be 3.3%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (51% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 45% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Jul 31
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.9% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (358% cash payout ratio). Share price has been volatile over the past 3 months (7.3% average weekly change). Profit margins are more than 30% lower than last year (13% net profit margin). Upcoming Dividend • Mar 12
Upcoming dividend of AU$0.15 per share Eligible shareholders must have bought the stock before 19 March 2024. Payment date: 29 March 2024. Payout ratio is on the higher end at 89%, and the cash payout ratio is above 100%. Trailing yield: 3.7%. Lower than top quartile of German dividend payers (5.0%). Lower than average of industry peers (6.5%). Declared Dividend • Feb 02
First half dividend of AU$0.15 announced Shareholders will receive a dividend of AU$0.15. Ex-date: 19th March 2024 Payment date: 29th March 2024 Dividend yield will be 4.0%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (89% earnings payout ratio) but not covered by cash flows (404% cash payout ratio). The dividend has increased by an average of 6.6% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share is expected to grow by 85% over the next 3 years, which should maintain adequate earnings cover for the dividend. New Risk • Jan 31
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.9% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (3.9% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 101% Cash payout ratio: 404% Minor Risk Profit margins are more than 30% lower than last year (13% net profit margin). Announcement • Oct 19
Credit Corp. Group Limited Revises Earnings Guidance for the Year 2024 Credit Corp. Group Limited revised earnings guidance for the year 2024. For the year, the company expecting net profit after tax in the range of $35 million to $45 million compared to $90 million to $100 million and EPS of 51 cents to 66 cents compared to 132 cents to 147 cents. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment deteriorates as stock falls 35% After last week's 35% share price decline to €7.05, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 7x in the Consumer Finance industry in Europe. Total loss to shareholders of 37% over the past three years. Announcement • Sep 23
Credit Corp Group Limited Announces Retirement of Leslie Martin as Non-Executive Director on October 24, 2023 The Board of Credit Corp. Group Limited (Credit Corp) announced that Ms. Leslie Martin will retire as a Non-Executive Director at the conclusion of Credit Corp.'s upcoming Annual General Meeting on 24th October 2023. Leslie had served on the Board of Credit Corp. for over nine years during which time the organically developed consumer lending and US debt buying activities had significantly grown to now comprise the majority of Credit Corp.'s earnings. Upcoming Dividend • Sep 11
Upcoming dividend of AU$0.47 per share at 3.3% yield Eligible shareholders must have bought the stock before 18 September 2023. Payment date: 29 September 2023. Payout ratio is a comfortable 52% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of German dividend payers (4.9%). Lower than average of industry peers (6.4%). Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €11.80, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 7x in the Consumer Finance industry in Europe. Total returns to shareholders of 9.7% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €15.88 per share. Announcement • Aug 02
Credit Corp Group Limited Announces Dividend for the Six Months Ended June 30, 2023, Payable on September 29, 2023 Credit Corp. Group Limited announced a dividend of AUD 0.47000000 for the six months ended June 30, 2023. The record date is on September 19, 2023. The ex-date is on September 18, 2023 and payment is on September 29, 2023. Buying Opportunity • Jun 23
Now 21% undervalued Over the last 90 days, the stock is up 20%. The fair value is estimated to be €14.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 10% per annum. Earnings is also forecast to grow by 10% per annum over the same time period. Announcement • May 22
Credit Corp Group Limited Announces Cessation of Richard Thomas as Director Credit Corp. Group Limited announced that the cessation of Richard Thomas as director with effect from May 19, 2023. Board Change • May 18
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non Executive Director Brad Cooper was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 14
Upcoming dividend of AU$0.23 per share at 3.2% yield Eligible shareholders must have bought the stock before 21 March 2023. Payment date: 31 March 2023. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (4.5%). Buying Opportunity • Mar 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 6.2%. The fair value is estimated to be €15.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 7.5% per annum. Earnings is also forecast to grow by 8.7% per annum over the same time period. Announcement • Feb 02
Credit Corp Group Limited Announces Dividend for the Six Months Period Ended December 31, 2022, Payable on March 31, 2023 Credit Corp. Group Limited announced the dividend of AUD 0.23000000 per ordinary share for the six months period ended December 31, 2022. Ex Date: March 21, 2023. Record Date: March 22, 2023. Payment Date: March 31, 2023. Is the ordinary dividend/distribution fully franked: Yes. Announcement • Jan 03
Credit Corp Group Limited Appoints Lyn McGrath as Non-Executive Director The Board of Credit Corp. Group Limited announced the appointment of Ms. Lyn McGrath as a Non-Executive Director. Lyn is an experienced Non-Executive Director, having transitioned from a successful executive leadership career in financial services. Mr. Eric Dodd, Credit Corp. Chairman, drew attention to Lyn's impressive executive career including her leadership of large retail financial services teams and transformative digital implementation projects. Lyn had a long and successful executive career culminating in her role as Group Executive Retail Banking at BOQ responsible for both the BOQ Retail Bank and the Virgin Money Australia Digital Bank. Prior to BOQ, Lyn was at CBA for almost twelve years, including Executive General Manager roles leading the retail branch network and a significant component of the wealth advice business. In her Non-Executive career, Lyn is a Director of Challenger Bank Ltd, an ADI wholly owned by Challenger Group, a Director and Chair of the Audit and Risk Committee of the Australian Digital Health Agency as well as Chair of TogetherAI Pty Ltd, a mental health technology platform focused on pre-teens and their parents/carers. Lyn has a Bachelor of Arts from Macquarie University and a Master of Business Administration from the Macquarie Graduate School of Management. She is a Graduate of the Australian Institute of Company Directors, a Senior Fellow of FINSIA, a Vincent Fairfax Fellow in Ethical Leadership and a member of Chief Executive Women. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improved over the past week After last week's 16% share price gain to €12.10, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 6x in the Consumer Finance industry in Europe. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €18.01 per share. Upcoming Dividend • Aug 25
Upcoming dividend of AU$0.36 per share Eligible shareholders must have bought the stock before 01 September 2022. Payment date: 12 September 2022. Payout ratio is a comfortable 50% but the company is not cash flow positive. Trailing yield: 3.6%. Lower than top quartile of German dividend payers (4.6%). Lower than average of industry peers (5.0%). Upcoming Dividend • Feb 21
Upcoming dividend of AU$0.38 per share Eligible shareholders must have bought the stock before 28 February 2022. Payment date: 11 March 2022. Payout ratio is a comfortable 52% but the company is paying out more than the cash it is generating. Trailing yield: 2.4%. Lower than top quartile of German dividend payers (3.3%). Lower than average of industry peers (3.0%). Buying Opportunity • Feb 04
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 3.9%. The fair value is estimated to be AU$25.31, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.5% per annum over the last 3 years. Earnings per share has declined by 30% per annum over the last 3 years. Upcoming Dividend • Aug 23
Upcoming dividend of AU$0.36 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 10 September 2021. Trailing yield: 2.3%. Lower than top quartile of German dividend payers (3.1%). Lower than average of industry peers (3.7%). Executive Departure • Mar 19
Independent Non Executive Director has left the company On the 19th of March, John Nesbitt's tenure as Independent Non Executive Director ended after 1.5 years in the role. As of December 2020, John personally held 6.02k shares (€111k worth at the time). John is the only executive to leave the company over the last 12 months. Recent Insider Transactions • Feb 12
Independent Non-Executive Director recently sold €212k worth of stock On the 9th of February, Donald McLay sold around 10k shares on-market at roughly €21.24 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought €25k more than they sold in the last 12 months. Is New 90 Day High Low • Feb 03
New 90-day high: €20.20 The company is up 74% from its price of €11.60 on 05 November 2020. The German market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Finance industry, which is up 28% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €9.67 per share. Is New 90 Day High Low • Dec 17
New 90-day high: €15.50 The company is up 44% from its price of €10.80 on 18 September 2020. The German market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Finance industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €10.09 per share. Is New 90 Day High Low • Nov 11
New 90-day high: €13.70 The company is up 21% from its price of €11.30 on 13 August 2020. The German market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Finance industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €8.76 per share. Is New 90 Day High Low • Oct 16
New 90-day high: €12.10 The company is up 17% from its price of €10.30 on 17 July 2020. The German market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Finance industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €9.20 per share.