Credit Clear (ASX:CCR) used its half-year results presentation to highlight continued improvements in revenue and profitability, an expanding client base, and a strategy centered on combining technology-led collections with people-led services. Management also discussed recent acquisitions and an expansion into business process outsourcing (BPO) as key growth initiatives for the next phase of the company’s development.
Business model and service scope
In opening remarks, management emphasized that Credit Clear operates across the accounts receivable and collections lifecycle, from early-stage debt management through late-stage collections. The company also stressed that it does not buy debt, instead helping clients resolve debt “through technology and people.”
Half-year performance: revenue up, underlying EBITDA higher
CFO Victor (speaking during the presentation) said key financial metrics “continue to head in the right direction,” with revenue up 8% driven by a mix of existing and new clients. He noted the company has recently focused more on existing clients because the payoff tends to arrive faster than efforts aimed at winning new customers, although management said it continues to pursue new clients and described the sales pipeline as solid.
Underlying EBITDA increased 24%, which management framed as a positive outcome given the group’s continued investment in growth. Victor said shareholders have been looking for improvements in revenue and underlying EBITDA, and management was “quite happy” with the trajectory.
On liquidity, the company reported just under A$21 million on the balance sheet as of 31 December after a capital raise and spending on acquisitions. Victor also addressed a dip in cash from operations, attributing it primarily to a A$2 million reduction in payables (from A$6.7 million to A$4.7 million) and describing it as a timing issue rather than a deterioration in operating performance.
Management said underlying EBITDA margin continued to improve. Gross margin was described as stable, with an expectation for improvement in the second half, which executives said is typically stronger due to seasonality and activity that tends to be back-ended toward the end of the financial year.
Client momentum and “share of wallet” gains
The CEO said the first half included 12 new Tier Two clients, which management said helps de-risk the business by reducing reliance on Tier One clients. Executives also described improved positioning on client panels versus competitors, citing superior recovery rates, service, and compliance.
Management said this performance has contributed to “proposed or locked-in” increases in share of wallet with existing clients, supporting expectations for stronger growth in the second half and into FY27. In the Q&A, the CEO also noted the company had made a strategic decision 12 to 18 months earlier to reduce focus on one-off SME-type customers, aiming for more recurring revenue characteristics.
Acquisitions and expansion initiatives
Management discussed three major initiatives, two of which were acquisitions that closed in January and therefore were not reflected in the first-half results. Executives said the acquired businesses would contribute approximately five to six months of earnings into FY26 and a full 12 months into FY27.
- BPO expansion: The company launched business processing operations to meet demand from existing clients and to serve new clients seeking onshore and offshore services. Management highlighted its Philippines-based Nova Team Solutions operation, which has been established for five years, and said it is expanding beyond supporting internal operations to also serve external clients. The CFO said a new lease has been entered into as the existing Philippines office is at capacity, and that the company hired a senior manager with experience running a 300-400-person BPO operation.
- ARC Europe acquisition: Described as a UK-based debt collection agency established in 2001, ARC Europe brings exposure to a market management characterized as four to five times the size of Australia’s. Management said ARC Europe’s client base is business-to-consumer, which should support deployment of Credit Clear’s technology, and executives noted ARC Europe is “substantially more profitable as a %” than Credit Clear. The owners are committed through an earn-out and escrowed shares, according to management.
- Digital Tech Solutions (DTS) acquisition: Management described DTS as a business with more than 35 years of operating history that aligns with Credit Clear’s accounts receivable software focus. Executives highlighted a client roster including EnergyAustralia, Virgin, O2 Telecom, HSBC, and Vodafone, along with multi-year agreements and recurring revenue characteristics. Management said the acquisition expands its addressable market across the UK, Australia, New Zealand, the US, and Canada and creates cross-sell and upsell opportunities, though the CFO said investment—particularly in sales—will be needed to accelerate growth.
In the Q&A, Victor said amortization related to the two January acquisitions had not yet been calculated, as purchase price allocations were still in progress. He also noted that acquisition-related amortization from the ARMA acquisition is expected to fully amortize in February 2027.
Guidance, AI, and capital allocation comments
The company provided full-year revenue guidance of A$57 million to A$59 million and underlying EBITDA guidance of A$9.5 million to A$10.5 million. The CFO said the existing Australian business was on track to meet original guidance and that second-half performance is expected to improve based on prior seasonality. He also said forecasting growth for the newly acquired businesses is challenging early on, so assumptions were conservative, with investment costs expected in the second half for both ARC Europe and DTS.
During the Q&A, Victor clarified that revenue from the acquisitions included in the FY26 guidance was A$7 million to A$8 million, describing this as additional revenue on top of the core business guidance. He also indicated that acquisition EBITDA contribution implied in guidance is modest and affected by one-off and integration costs, with expectations for margin improvement beyond this financial year due to synergies and growth initiatives.
On AI, management said the company has already used AI to reduce headcount in its technology team by assisting with coding and development work. The CEO also discussed plans to use AI agents to handle inbound call traffic to reduce call center staffing requirements, though he said the technology is “still a little bit away” from handling a large portion of calls at the level marketing materials may suggest. Management noted that such capabilities could be deployed both in Australia and the Philippines over time.
Finally, management addressed share price weakness and questions about restarting a share buyback versus pursuing acquisitions. The CEO said the board’s focus is on deploying capital “well,” maintaining discipline in acquisitions, and continuing to invest in growth opportunities. He added that the company has capital available following a heavily oversubscribed capital raise and believes execution and results will ultimately be reflected in the share price.
About Credit Clear (ASX:CCR)
Credit Clear Limited engages in the development and implementation of receivables management platform, and provision of receivable collection services in Australia and New Zealand. It operates in two segments, Receivable Collections and Legal Services. The company offers technology-enabled communications platform that helps organizations to drive financial outcomes by changing the way customers manage their re-payments. It provides credit legal services. The company serves the consumer, trade credit, automotive, financial services, government, utility, and insurance industries.
