The Pioneer Credit Ltd (ASX: PNC) share price is up almost 5% after it made a business update announcement.
Pioneer Credit is a debt collecting business that also provides other financial services with over 160,000 customers across Australia and New Zealand. Pioneer Credit Solutions acquires and manages retail debt portfolios, Pioneer has headquarters in Perth, it also has offices in Sydney, Melbourne, Brisbane and Manila.
Pioneer Credit’s News
Pioneer Credit has received several confidential, non binding, indicative offers for the company and purchased debt portfolio (PDP) liquidations for FY19.
The company re-iterated that the best proposal it has received was at a material premium to Pioneer Credit’s share price at the time. The company granted non-exclusive access for third parties to conduct due diligence.
Sadly, the most comprehensive proposal will not proceed in its current form, although Pioneer Credit is still in discussions with this party. Discussions are ongoing with other parties but aren’t advanced enough for disclosure yet.
In terms of FY19, it received approximately $118.5 million in PDP liquidations for FY19, an increase of 16.6% compared to last year. Pioneer Credit has recorded total top line results comprising PDP liquidations & services and other income of approximately $122.4 million.
Whilst the growth is pleasing for Pioneer Credit’s FY19 result, its share price is still down substantially from around 11 months ago. Debt collectors are not my preferred type of business to own, I would much rather buy shares of the growth shares in the free report below instead.
[ls_content_block id=”14947″ para=”paragraphs”]
[ls_content_block id=”18380″ para=”paragraphs”]
