Despite rising funding costs, Pioneer Credit has reported an 11% increase in cash collections and a notable improvement in EBITDA and EBIT for the half-year ended Dec. 31.
Pioneer returned to profitability and saw major improvements in key metrics, with EBITDA rising 9% to $49.2m and EBIT increasing 37% to $17.9m compared to the previous corresponding period.
Despite modest profit, the results underscored Pioneer’s operational strength during a time when rising funding costs, up 24% to $17.9m due to hikes in the RBA cash rate, posed challenges.
Pioneer formed an SPV with a $35m Nomura debt facility, acquiring a $24.1m banking portfolio and a $15.8m Part IX debt portfolio, as announced in December 2023 and February 2024. Despite surging demand exceeding its acquisition capacity, this strategy allows Pioneer to selectively invest for higher returns.
This move, coupled with the appointment of Nomura as the exclusive senior finance arranger, marks a pivotal step in Pioneer’s refinancing strategy, aimed at reducing funding costs and enhancing profitability.
Read more: 1H24 Results Video Presentation
With an eye on future growth and governance enhancement, Pioneer Credit has announced board succession plans.
Suzan Pervan (pictured above left), with her extensive experience in accounting and finance, steps in as the new chair of the audit and risk management committee.
Pervan worked nine years at Ernst & Young in Australia and five years abroad. She co-founded the Perth accountancy firm Gooding Pervan, in 1998, retiring in 2010. A Chartered Accountants Australia and New Zealand member, Pervan also holds a BBus from Curtin University.
“I’d like to thank Peter for his leadership of the ARMC and look forward to Suzan’s contribution to the company as ARMC chair,” chairman Steve Targett (pictured above right) said. “The executive and I look forward to working with Suzan in this new role.”
The company is evaluating candidates to succeed Hall as a non-executive director following his departure, with an announcement planned for the suitable time.
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