# CLH - Collection House



## System (1 August 2010)

Collection House Limited (CLH) is a group of companies headquartered in Australia, operating globally and delivering a range of financial services including receivables management, debt collection, insurance recovery and claims management, debt purchasing and recovery, credit reporting and corporate risk rating in Australia and New Zealand.

http://www.collectionhouse.com.au


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## JellySausage (24 November 2010)

Anyone holding CLH atm?

P/E ratio of 7.58
Div Yield 8.4%

Earnings up 23% for this year.

The price has been going down recently.  Help me out guys, what am I not seeing?


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## ParleVouFrancois (24 November 2010)

It's a pretty small company, so the liquidity issues will always ensure that it's undervalued imo (most people won't buy in unless they can liquidate their holdings in a single day). The company itself however, seems to be very well run, I've just had a look through the presentation, this seems to be somewhat of a niche company, so I'm not sure how long the growth rates it's currently achieved can be sustained. There is a new COO, who might change things up a bit (perhaps long term investors are worried that he might be a hoarder, and go on an acquisition spree?). However CLH overall seems to be a good fundamental investment for a few years, if it keeps growing at say 10%, and the dividend is maintained at current payout ratios, it all adds up to a handsome return.


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## JTLP (24 November 2010)

ParleVouFrancois said:


> It's a pretty small company, so the liquidity issues will always ensure that it's undervalued imo (most people won't buy in unless they can liquidate their holdings in a single day). The company itself however, seems to be very well run, I've just had a look through the presentation, this seems to be somewhat of a niche company, so I'm not sure how long the growth rates it's currently achieved can be sustained. There is a new COO, who might change things up a bit (perhaps long term investors are worried that he might be a hoarder, and go on an acquisition spree?). However CLH overall seems to be a good fundamental investment for a few years, if it keeps growing at say 10%, and the dividend is maintained at current payout ratios, it all adds up to a handsome return.




Try CCP - and have a read of that story haha.

They are on the right track though and are proving handsome for current holders. Why not check them and compare?


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## Math (8 January 2011)

JellySausage said:


> Anyone holding CLH atm?
> 
> P/E ratio of 7.58
> Div Yield 8.4%
> ...




Price going down and volumes up - note an overseas FM has disclosed they are selling down - on market. Fundamentals are strong and would support higher prices once stock overhang is traded. Disc: interests in CLH


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## robusta (9 January 2011)

JellySausage said:


> Anyone holding CLH atm?
> 
> P/E ratio of 7.58
> Div Yield 8.4%
> ...




Interesting company.

The cash flow looks good but the ROE is a bit low and the debt/equity is a bit high for me.

I will add to watch list and look for improvements.


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## skc (9 January 2011)

robusta said:


> Interesting company.
> 
> The cash flow looks good but the ROE is a bit low and the debt/equity is a bit high for me.
> 
> I will add to watch list and look for improvements.




Debt/equity ratio for CLH needs to be looked at slightly differently imo. They are essentially a small finance company, borrowing to buy receivables and hopefully collect more than what they've paid for and make some profits in the process. So debt will be higher than most other companies. 

Since debt is needed to purchase those receivables. The key metric for them has to be return on capital (i.e. equity and debt spent on purchasing the debt). Although one would thought that if they are good at ROC, it will be reflected also in ROE...


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## Basilica (9 February 2012)

Hi folks, Not sure what to make of this company. They buy debt. had a 5.8m cap raising recently to buy more debt.   If we assume my prediction of the economy is going downhill. is this good or bad for this company.
thought 1 , it is good for the company as a debt collector
thought 2 , it is bad as they may not collect on the debt they bought.
I am a newbie investor 
Cheers


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## McLovin (14 February 2012)

Basilica said:


> Hi folks, Not sure what to make of this company. They buy debt. had a 5.8m cap raising recently to buy more debt.   If we assume my prediction of the economy is going downhill. is this good or bad for this company.
> thought 1 , it is good for the company as a debt collector
> thought 2 , it is bad as they may not collect on the debt they bought.
> I am a newbie investor
> Cheers




CCP is better, IMO.

CLH is like CCP was 5 or so years ago. Buying PDL's with debt. It's funny that CCP keep saying that the price for PDL's is rising, which is curbing their buying activities because at current prices many don't meet their return criteria, but CLH is accelerating its buying program...


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## VSntchr (14 February 2012)

McLovin said:


> CCP is better, IMO.
> 
> CLH is like CCP was 5 or so years ago. Buying PDL's with debt. It's funny that CCP keep saying that the price for PDL's is rising, which is curbing their buying activities because at current prices many don't meet their return criteria, but CLH is accelerating its buying program...




I agree with McLovin on this one...CCP is generating so much cash at the moment that they are paying increased dividends along with ~$10m in principle debt reduction each half...if they keep this up then they could be debt free by FY12...thus giving them the chance to BOOOST dividends/buyback shares..or futher fund expansion... Much more brightside with CCP IMO...


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## ROE (14 February 2012)

VSntchr said:


> I agree with McLovin on this one...CCP is generating so much cash at the moment that they are paying increased dividends along with ~$10m in principle debt reduction each half...if they keep this up then they could be debt free by FY12...thus giving them the chance to BOOOST dividends/buyback shares..or futher fund expansion... Much more brightside with CCP IMO...




that is because 

CCP has a competive advantages over these guy
you find out what it is if you read all their annual report going backs a few years.

CCP is like DMP they use technology to their advantages. 

their business isn't high tech but they applied high tech perfectly to their business.
awesome combination when technology drive efficiency and productivity


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## Math (14 February 2013)

What's the view on this one now ? Recent rally still in play.


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## richbb (4 April 2013)

*Collection House--CLH: Chance to bounce!*

CLH has been down for straight 9 days, it closed at 1.38 today from about 1.7, down 20%. With the volume of 823K,it went low of 1.325. It looks the correction is near end and tomorrow will be crucial time for its share to rebound.


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## richbb (8 April 2013)

*Re: Collection House--CLH: Chance to bounce!*



richbb said:


> CLH has been down for straight 9 days, it closed at 1.38 today from about 1.7, down 20%. With the volume of 823K,it went low of 1.325. It looks the correction is near end and tomorrow will be crucial time for its share to rebound.




CLH bounced from last Friday and today up 7c, closed at 1.50, it looks very strong, the only concern is the volume, only 250k for today, it's ok but not so big. Hope tomorrow is another up day for CLH!


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## Guardian2014 (14 March 2014)

$1.85 ATM

NPAT up 16.22% for the half year to Dec 31 1013

Interim Div of 2.9 cents

Looks like this stock hasn't been bad to people.


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## PinguPingu (27 August 2014)

Big break out recently on good profit result, seeing it being spruiked everywhere by Motel Fool and others though.


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## VSntchr (27 August 2014)

PinguPingu said:


> Big break out recently on good profit result, seeing it being spruiked everywhere by Motel Fool and others though.




I ran some quick numbers on CLH after the result as I hold a position in CCP.

One such metric I came up with showed that CLH is still turning over PDL's much slower than CCP.

PDL turnover for CLH 0.45x = (CCP = 2.11x)


One question for anyone following CLH, how do they handle their PDL carrying value? I see a $38.8m fair value adjustment last year but can't find anything this year! I also see they have changed the accounting entry method since July 2013...but I am still left scratching my head a bit....


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## Gringotts Bank (28 October 2015)

Long way down from recent highs of 2.40.

Pays a good divi.  

Been fairly hammered.  Maybe time for a move up.  Fundamentals all ok?


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## galumay (28 October 2015)

Gringotts Bank said:


> Long way down from recent highs of 2.40.
> 
> Pays a good divi.
> 
> Been fairly hammered.  Maybe time for a move up.  Fundamentals all ok?




I think CCP are a much more compelling buy at their current price - alsooff a fair bit from recent highs.


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## Gringotts Bank (28 October 2015)

galumay said:


> I think CCP are a much more compelling buy at their current price - alsooff a fair bit from recent highs.




ok thanks.  I've been studying the chart and it just looks too bearish to get involved here.

Something will happen, that's for sure - It will either drop through the floor or put on 20%.  It just seems a bit more like the former at the moment but I'll jump on if it puts on 5-10% from here.


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## peter2 (28 April 2016)

For those of you who think this is still a good business, the chart looks much better now.

Price has filled the last gap down and now we wait for a higher low and further signs of demand.


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## galumay (28 April 2016)

I still think CCP is a much better business - and better buying even at current prices.


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## pinkboy (26 July 2016)

When will we see a speeding ticket for CLH?

$1.15 Friday, $1.36 today.

pinkboy


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## DVV11 (19 August 2016)

Thoughts after yesterday's results.


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## The Triangle (28 June 2019)

I took CLH off my watch list today due to the appointment of new the CFO (Ex. Silverchef).   As a rule I try to avoid investing in a company which appoints people who have come immediately from a company which has had severe troubles.


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## Blade Runner (18 October 2019)

Just wondering what peoples expectations are with the up coming AGM and what after the recent turmoil with other shareholders, is next year going to look like for CLH


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## Dona Ferentes (8 April 2020)

Blade Runner said:


> Just wondering what peoples expectations are with the up coming AGM and what after the recent turmoil with other shareholders, is next year going to look like for CLH



Turmoil seems to follow this company. In suspension for several months  .... came across this in an ANO announcement of a few days ago


> *Collection House Limited (“CLH”) & ASX *
> Many of our shareholders may be unaware that our Chairman is currently in court with the
> ASX and CLH as a result of the ASX publishing a market release for CLH which was
> defamatory towards our Chairman. Further, CLH remains voluntary suspended. More
> ...




_(- don't hold, never have)_


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## ChristopherJ (23 September 2020)

Newish to investing, I have held 1k worth of CLH shares for couple of years, recentely tried to sell them, seems to be a problem with them, is selling them going to be hard work?


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## peter2 (23 September 2020)

You'll have to wait until the suspension ends and CLH resumes trading to sell them.


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## Dona Ferentes (30 June 2022)

peter2 said:


> You'll have to wait until the suspension ends and CLH resumes trading to sell them.



Administrators called in. Join the queue.



> The Administrators are appointed to the ASX-listed Collection House only and not its subsidiaries


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## Dona Ferentes (30 June 2022)

Collection House had been cutting staff and offloading assets such as debt ledgers to rival Credit Corp in an effort to lessen its own bank borrowings and save cash. By April, it said it had largely reduced its senior bank debt by $52 million, with almost $5 million outstanding and secured against Volt Bank shares.

(!!)


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## Dona Ferentes (1 July 2022)

_More re Volt:_

Collection House invested $8.5 million for a 4.5% stake in Volt in 2019. A new round of funding by Volt in 2020 saw the value of CLH’s Volt shareholding cut to $4.9 million. That fell to $3.5 million in 2021.

As of April this year, Collection House had a $5 million debt that was secured by the stake in Volt.

“CLH has a remaining $6m senior debt facility secured on a limited-recourse basis against the Company’s investment in Volt Bank Limited. $1.0 million of this Volt Facility was repaid during March 2022 with the outstanding balance now $5.0 million. CLH continues to actively explore opportunities to realise this investment and expects to repay this remaining facility in the near future,” Collection House said in a statement to the ASX on April 26.

_... and it all came to naught._


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## System (7 December 2022)

On November 29th, 2022, Collection House Limited (CLH) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following the transfer of all shares of CLH to Credit Corp Group Limited.


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