National Credit Management Limited (NCML)
is a leading provider of credit and receivables management services in Australia.

NCML has been partnering with Australia’s largest creditors for over two decades and has become highly specialised in the government, banking, insurance, fines and tolling sectors. NCML’s offering extends from pre-collection services, to responsible hardship management, arrangement management, legal recovery and debt purchasing.

As a result of changing business practices with some long standing clients, revenue fell 21.7 per cent to $14.7 million. EBIT was also affected by a valuation methodology change for PDLs which included a $1.2 million revenue devaluation in the second half, resulting in EBIT finishing 40.1 per cent lower at $1.4 million. In FY16, NCML increased its investment in the Purchase Debt Ledger book by 35 per cent with $12 million of purchases. This increases the asset base from which collections are made.

Strategic
Intent

In FY16, NCML has worked towards rebuilding its foundations for growth. It is now better positioned strategically in a competitive market and has a clearer vision of the future.

NCML has been focused on strengthening capabilities across collection strategy and customer engagement through a number of digital initiatives, including industry-leading technologies to drive customer engagement and a new online portal. These developments will be a key differentiator for NCML.

While contingent collections continue to provide the majority of revenue and is an area in which NCML is becoming more competitive, the PDL portfolio is also growing and evolving its “arrangement bank” build which will underpin future revenues for the division. A number of key wins and new clients in government and financial services sectors reinforced the decision to clarify NCML’s execution focus to Purchased Debt (where debt is purchased from the original credit issuer) and Contingent Debt (where debt is actioned, for a fee, on behalf of the credit issuer), allowing NCML to be more agile as a business, play to its strengths, provide value to clients and secure new and upgraded contracts.

DEVELOP
value for customers through innovative recovery outcomes
EXPAND
through agility, insights, and customer engagement
ENHANCE
capabilities across collection strategy and customer engagement through a number of digital initiatives