Pioneer set for profitable year

Financial services provider Pioneer Credit says it’s on track for a record FY16, after delivering a 105 per cent rise in half-year profit.

Perth-based Pioneer Credit posted the surge in profit, up to $3.3 million, along with a 36 per cent rise in revenue to $21.1 million compared with the previous corresponding period.

Customer payments rose $22 per cent to $27.1 million, while the portfolio face value of its customer accounts reached $1 billion during the half for the first time.

Pioneer declared an interim dividend of 3.6 cents per share, fully franked.

Managing director Keith John said the progress made in the past six months would ensure the company’s core business continued to grow and deliver strong performance while providing avenues for growth, including development of new credit products.

The half-year result includes the sale of a portfolio of ‘Part IX’ accounts, also known as ‘bankruptcy compromised’ accounts, in line with the firm’s liquidation strategy.

Pioneer also reaffirmed it was on track to achieve a record profit result for FY16 of at least $8.8 million.

“We remain focused on growing our purchased debt portfolios at price points which we are confident will be accretive, over not just the short term but over the medium term and long term as well,” Mr John said.

“Currently, pricing remains challenging with many transactions completing beyond where we believe is sustainable or reasonable.

“Our strategy continues to focus on acquiring PDPs where appropriate returns are achievable rather than chase short term outcomes.

“Our guide to an investment of at least $42 million for the year remains, however we do not expect to materially outperform this amount.”

Pioneer shares closed 2.3 per cent higher to $1.79 each.