Credit Clear (ASX: CCR), an Australian receivables management solution company, has achieved a strong maiden profit after recording a revenue of $3.03 million in May. This was a massive achievement for the management solution provider as it achieved this milestone two months ahead of the company’s forecast. The company attributed this profit to the strength of its “digital-first end-to-end” strategy. Credit Clear announced that it expected to record its maiden profit in July. However, the date was sooner than many expected as Credit Clear has now achieved the goal- a $23k operational profit in May.
This profit did not come as a surprise because a combination of different factors, such as the strong growth of new and existing clients, coupled with maintaining a prudent approach to investing in technology, ensured the company’s success. CCR did not just achieve a record-high profit alone, it also fortressed its balance sheet after a $7.5 million capital raise at 43c earlier this month. The company is also confident that its growth will increase in FY23 as the cost of living keeps increasing at a rate ahead of the wage growth.
Andrew Smith, the CEO of Credit Clear, explained, “In 2023, Credit Clear positioned itself to lead the market as an end-to-end credit management provider. We’ve done this by providing a ‘best-of-both’ offering that sees our award-winning AI technology combined with an experience-led and customer-centric service offering.”
The company intends to rapidly improve its client onboarding in Q1 of FY23 after signing new clients in the last three months. Credit Clear signed up 15 new clients in April, totaling around $80 million in debt across 110,000 customer accounts, a 15% increase in a month. This further signifies the scalability of the Credit Clear business model.
According to Smith, Credit Clear solves a significant market pain point: debt collection. He concluded by saying, “We exit the 2022 financial year as a profitable market-leading company, and our intention is to reinvest profits for growth. With a strong cash balance and an increasingly supportive economic environment, Credit Clear is positioned to deliver strong growth across every business unit in FY23.”
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