Baycorp expects reduced growth in credit demand

SYDNEY - Credit collector Baycorp Advantage today reported a net profit of A$46.052 million ($55.6 million) for 2005/06, up 16 per cent on the previous year.

The Australasian credit reporting company said it expected to see a reduced rate of growth in credit demand in the year ahead, news agency AAP reported.

Baycorp managing director Andrew Want told AAP the company expected the changing economic conditions in Australia and New Zealand to reduce the rate of growth in credit demand and new credit applications in 2006/07.

"We have customer and product strategies in place which are designed to deliver revenue growth in an environment we feel is likely to be less certain than at any time in the last three years," Mr Want said.

"We expect that credit enquires related to debt consolidation and continued marketing activities by our major customers will partially offset slower rates of overall consumer credit growth.

"Business credit demand in Australia is expected to remain strong throughout the financial year."

The group expects to achieve earnings before interest and tax (EBIT) of between A$53 million and $58 million in 2006/07, up from A$48 million in 2005/06.