COLLECTION HOUSE RENEWS LUCRATIVE CONTRACT
26 February 2015,
COLLECTION House Limited (ASX:CLH) has extended its long-running contract with St George Bank for another four years.
The receivables management company will continue to provide the ongoing servicing of the bank's secured retail portfolio.
The contract also covers the secured retail portfolio acquired from Capital Finance Limited.
Collection House managing director and CEO Matt Thomas says the successful negotiation of the contract affirms the company's quality reputation.
"St George Bank's secured retail portfolio was outsourced to Collection House exclusively in 2001 and remains fully managed by our dedicated team of specialists, thirteen years after our appointment," Thomas says.
"The extension is a testament to the value of the full outsource model to the bank and the success of this model enables us to prevent bad debts escalating by intervening early in the credit receivable lifecycle."
The confirmation of the new contract follows a lengthy procurement process and was anticipated in the FY15 guidance.
Earnings will continue to contribute to results in following years.