Collection House Details Turnaround Year in Annual Report

Australian accounts receivable management firm Collection House spent most of its latest fiscal year concentrating on debt buying and collection activity as a part of a major turnaround, according to its annual report released Friday.

The Brisbane, Australia-based ARM reported last month the financial results of its year ended June 30, 2008 (“Australian Collection Agency Reports Big Gains in Turnaround,” Aug. 28). The company said that underlying profits increased 95 percent to A$7.4 million in the year. Revenues from continuing operations increased 17.7 percent to A$95.5 million. Total revenue, including from discontinued operations, totaled A$112 million, up from A$102 million in the prior year.

But the company gave investors an in-depth look at its operations in its annual report release. Collection House was forced to wind down some contingency collection contracts that “were not delivering acceptable returns.” As a result, the Contingent Collection unit saw a 7 percent drop in revenue.

The company’s debt purchasing division spent A$71 million buying consumer debt portfolios in the year, up sharply from the A$29 million it spent in the previous year. The debt buying unit recorded a 33 percent increase in revenue for the year.

Collection House also detailed its plans to move its corporate headquarters to a new building in Brisbane. Opening in October, the new location will house 300 employees. The company also moved its Sydney office during the year.

At the end of the fiscal year, Collection House reported 570 employees, down from the 638 that were employed at the end of the 2007 fiscal year.