Daily Roundup

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Solid Recovery and Strong Outlook for Credit Corp Group

Credit Corp Group Limited has reported a solid recovery in FY2025, with strong growth in its US debt buying and consumer lending segments. The company's US ledger collections were up 12%, enabling a record FY26 US investment pipeline of A$164 million. The consumer lending segment saw a 31% growth in net profit after tax, with a 5% increase in the consumer loan book to a record $466 million.

Despite ongoing uncertainty around the US consumer outlook, Credit Corp's collection outcomes have shown no signs of deterioration over the past 18 months. In Australia and New Zealand, the consumer lending business experienced rapid book growth in the prior year, followed by a more modest growth in FY2025 as consumer demand fell, driving strong earnings growth due to lower up-front loan origination and provisioning costs.

Looking ahead, Credit Corp is guiding for FY2026 PDL acquisitions of $280 - $330 million (a 27% increase), gross lending volumes of $350 - $390 million, and NPAT of $100 - $110 million (a 12% increase). The company's record US debt ledger investment pipeline and strong consumer lending book should produce the anticipated FY2026 NPAT growth.

Pinnacle Investment Management Group Delivers Stellar Results

Pinnacle Investment Management Group Ltd has reported outstanding financial results for the year ended 30 June 2025. The company's revenue increased by 33.7% to $65.475 million, while profit from continuing operations after tax attributable to shareholders grew by 48.8% to $134.427 million. Earnings per share (statutory basis) also increased by 38.0% to 63.2 cents.

Pinnacle's share of Affiliates' net profit after tax was $129.7 million, up 43% from the prior year. Performance fees earned by 12 Pinnacle Affiliates, post-tax, contributed $46.6 million of Pinnacle's NPAT in FY25, up from $31.2 million in FY24. Aggregate Affiliates' funds under management (FUM) stood at $179.4 billion at 30 June 2025, up 63% from the previous year.

The company has declared a final dividend of 27.0 cents per share, fully franked, taking total dividends for the financial year to 60.0 cents per share, up 43% from the prior year.

Pinnacle remains optimistic about the year ahead, stating that its business is in excellent shape and there is cause for optimism, despite the potential for earnings and net inflows to moderate during times of market dislocation.

Reckon Delivers Robust H1 2025 Results

Reckon Ltd, a software-as-a-service company, has reported strong financial results for the first half of 2025. The company generated revenue of $33 million, EBITDA of $14 million, and net profit after tax of $4 million, representing growth of 16%, 21%, and 35% respectively over the prior corresponding period.

Reckon's Accounting and Payroll Solutions for SMEs business saw cloud revenue growth of 8% and a 26% increase in Reckon One revenue. The company also completed the strategic acquisition of Cashflow Manager, adding 20,000 new SME clients. In the Legal Group, the company reported an 18% increase in subscription revenue and continued investment in its cloud-based Billing Workflows solutions.

Reckon maintained a clean balance sheet with $4.8 million in net debt as of 30 June 2025 and a $25 million bank facility. The company also declared a consistent 2.5 cents annual dividend to be paid in September 2025.

Reckon's CEO, Mr. Sam Allert, expressed the company's satisfaction with the first-half results, stating that the plan to generate stable cash flows from the well-established Business Group provides the flexibility to invest in high-growth opportunities such as the US and UK-focused Legal Group, as well as the continued investment in Reckon One cloud-based products.

Telix Pharmaceuticals Transitions to USD Reporting

Telix Pharmaceuticals Limited has announced that it will change its reporting currency from Australian dollars to United States dollars (USD), effective 1 January 2025. This change aligns with the predominant currency used for reporting the company's revenue, costs, and corresponding cash flows, which are primarily generated in the U.S. and denominated in USD.

Telix is providing recast full-year and half-year financial information for 2023 and 2024 on a voluntary, unaudited basis to assist investors with the transition. The company's U.S. operations have expanded significantly following a number of acquisitions, including the completion of the RLS Radiopharmacies acquisition on 27 January 2025.

Telix also advises that operating expenditure (OPEX), excluding investment in research and development, is expected to be approximately 36% of revenue in H1 2025 (unaudited). This reflects the expanded business activities and the company's ongoing strategy to reinvest earnings in commercial growth and pipeline development opportunities.

Northern Star Resources Showcases Growth Strategies

In its investor presentation at the Diggers & Dealers 2025 conference, Northern Star Resources Ltd highlighted its key growth strategies and operational updates.

The presentation focused on KCGM, Northern Star's growth engine, which has seen a 104% increase in Mineral Resources and a 48% increase in Ore Reserves since the company's acquisition. Northern Star is focused on executing its operating plans at KCGM, including the KCGM Mill Expansion Project, which is on track and within budget for FY27 commissioning.

The presentation also covered the Yandal operations, with a strategic focus on cost reduction, and the Pogo mine, which is positioned for strong returns with consistent and reliable operational delivery.

Additionally, the presentation introduced the Hemi Development Project, Northern Star's newest growth engine, which enhances the company's overall portfolio through its tier-1 jurisdiction, material scale, and geological upside. The company is currently awaiting project approvals and optimizing design parameters for Hemi.

Northern Star is committed to creating value through its major projects, cost reduction initiatives, and geological exploration to unlock future portfolio value.