CREDIT CLEAR LIMITED (CCR)
Share Price Analysis and Chart

27/05/2025

1

Buy

$0.44

95.56%

Shaw and Partners slightly upgrades its FY26 and FY27 earnings (EBITDA) forecasts following Credit Clear's guidance update. This confirmed $2m in annualised cost savings and reiterated FY25 EBITDA guidance of over $7m.

FY25 revenue guidance was revised down to $46-48m, below the broker’s forecast by -$1.1m, attributed to delayed receivables collection from a small number of clients facing operational issues.

Despite the modest revenue downgrade, the broker expects 37% earnings growth in FY26, supported by cost-saving initiatives and growth from both existing and new clients.

Management is actively exploring acquisition opportunities, likely in New Zealand and the UK, with its digital-led model showing proven success in Australia, and has $10m in net cash to support potential deals, notes the analyst.

Shaw maintains a Buy rating with a $0.44 target price.

FORECAST
Shaw and Partners forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.30 cents.
Shaw and Partners forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.80 cents.

29/05/2025

1

Buy

$0.49

117.78%

Management at Credit Clear has lowered FY25 revenue guidance to $46-47m from $48-50m. Petra Capital explains this is due to cyclone impacts, delays in receiving credit files from key clients, and slower onboarding of Tier-1 customers.

Despite softer top-line growth, FY25 earnings (EBITDA) guidance of circa $7m is unchanged, with a -$2m cost-out program offsetting the revenue shortfall, explains the analyst.

Management expects record monthly revenues in May and June and continues to secure Tier-1 wins, with 13 new client additions year-to-date.

Petra sees longer collection cycles and recurring revenues from Tier-1 clients as supportive for margin expansion.

A private equity approach has been received, while management is also actively exploring internal M&A options.

Petra lowers its price target to $0.49 from $0.57 on reduced near-term forecasts but maintains a Buy rating given operating leverage and strategic client wins.

FORECAST
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -0.70 cents.
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.90 cents.