Why these ASX stocks gaining market attention- FLT, CCP

Highlights:

• FLIGHT Centre Travel Group completed institutional Placement to raise AU$180 million to fund the acquisition of Luxury Travel Holdings Limited.
• Credit Corp Group Limited released 1H FY2023 results. It reported a drop in net profit by 30%.

By the end of the day’s trade on 01 February 2023, ASX 200 index increased marginally by 0.33% and settled at 7,501.70. Several factors influenced the market today. One of them was the performance of the companies within the index.

Today, two companies within ASX 200 gained market attention following the release of the announcements by these companies. In this article, we will see these updates.

 FLIGHT Center Travel Group (ASX: FLT)

On 01 February 2023, FLIGHT Center Travel Group announced that it completed the institutional Placement of new fully paid ordinary shares (the New Shares) to raise AU$180 million. Approximately 12.3 million New Shares are being issued as part of the Placement at a fixed price of AU$14.60 per New Share, representing a 7.8% discount to the last traded price of AU$15.83 on 30 January 2023.

The proceeds via Placement will help the Company to fund the acquisition of a 100% interest in

Luxury Travel Holdings Limited. The Company believes that acquiring Luxury Travel Holdings Limited will help it grow its leisure presence in the attractive US and UK luxury markets. Thus, complementing its existence presence.

Other than this, the Company also announced an update related to the Share Purchase Plan. As per this update, the eligible Flight Center shareholders with a registered address in Australia or New Zealand on the record date at 19:00 Sydney, Australian time on 30 January 2023, will have the opportunity to apply for up to AU$30,000 worth of Flight Center shares under the unregistered share purchase plan (SPP). Shares within the SPP will be offered at a lower of

• AU$14.60 per share, the same as the placement price.
• A discount of 2.0% from the volume-weighted average price of Flight Center shares traded during the five trading days up to and including the SPP deadline.

Through SPP, the Company aims to raise up to AU$40 million, with the ability to accept oversubscriptions, conditional on the ASX Listing Rules.

Credit Corp Group Limited (ASX: CCP)

On 01 February 2023, Credit Corp Group Limited reported the following highlights for 1H FY2023. CCP operates within the Australian debt collection and consumer lending industry.

The Company witnessed a 32% increase in consumer loan book to AU$331 million. It pointed out that it is on track to achieve record full-year consumer credit segment profits. It also noted constant recovery in settlement volumes, leading to substantial US investment.

Other than this, the Company witnessed a decline in the net profit by 30% compared to the previous corresponding period to AU$31.8 million. The net profit during the period was driven by up-front loss provisioning plus marketing expenditure from rapid loan book growth, costs rising from increased US resourcing as well as run-off in the core AU/NZ debt buying segment.

The Company expects its earnings to improve in 2H FY2023. Its full-year NPAT guidance remains intact, loan book growth will be moderate, and the record starting book will drive increased interest revenue. Further, the Company believes that the US collections will improve as elevated resourcing is converted into collections.

Besides this, the Company completed the acquisition of The Collection House agency during 1H FY2023. It is currently on track to make a positive contribution over the full year after a significant initial cost restructuring. Also, CCP was successful in retaining its client, and the expanded collection services segment provides an opportunity to improve client relationships and margins via ongoing integration.

Stock Information (AEDT 12:00 PM):

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