Forum Archive Index - May 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

Those following the debt management and receivables sector here and in Australia will have noticed that Collection House (CLH) have made more inroads into the market.

 

Collection House have just purchased a debt portfolio from an un-named Australian financial institution. The ledger of some 12,500 files has a face value in excess of $35 million.

The announcement says that Collection House expect continued growth in this sector of the business, as financial institutions seek further profits for their shareholders by making cost-effective decisions in relation to receivables management and debt collection. 

Collection House will continue to grow their market share in the future with more of these purchases because they have the cash and excellent software to handle the volume of transactions involved.

My reading of the market is that only Collection House and Baycorp are in a position to handle these types of volumes efficiently.

As such it is not inceivable that Collection House and Baycorp will become the two dominant parties in the market. It is difficult seeing any other competitor matching the service that these two can offer.

As more and more finance houses outsource their collection activities the more business for Collection House in Australia - because of their track record. Success does lead to more success

We must also remember that this is new work for the sector  - not just sharing what there was around. Bodes well for continued market growth.

These announcements from Collection House make the profit growth numbers that Gerry produced recently even more likely.

Cheers

Peter

Hold CLH