The Credit Clear Pty Ltd (ASX: CCR) share price has been a very strong performer since listing on the ASX boards earlier this week.
The Australian receivables management solution provider's shares landed on the ASX on Tuesday after raising $15 million at a price of 35 cents per share.
Since then, the Credit Clear share price has gained a remarkable 133% and is now changing hands for 81.5 cents.
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What is Credit Clear?
Credit Clear is a receivables management solution provider which has developed a proprietary digital billing and communication technology platform.
This platform allows organisations to manage communications and payment arrangements with their customers through an interactive digital and mobile interface as part of a full-service receivables suite of services.
Management notes that this achieves better customer engagement and insight, faster payment reconciliations, improved cash flows, and lower collection costs when compared to traditional methods.
At present, Credit Clear manages over 250,000 active customer accounts across a range of industries. This includes transport, financial services, government, utilities, and other sectors.
It also operates in a highly fragmented industry, with nearly 600 collection and receivables management businesses operating nationally. Management feels this makes the industry ripe for disruption by new technology-powered services.
In FY 2020, Credit Clear reported pro forma revenue of $11.2 million, gross profit of $9.6 million, and a loss before tax of $1.8 million.
Who is management?
The company is led by Chairman Gerd Schenkel and CEO Brenton Glaister.
Mr Schenkel is a former executive of National Australia Bank Ltd (ASX: NAB), Telstra Corporation Ltd (ASX: TLS), and Tyro Payments Ltd (ASX: TYR). Whereas Mr Glaister is a 35-year industry veteran and the founder of Credit Solutions. This is a business acquired by Credit Clear in November 2019.
Mr Schenkel commented: "Given the economic impact of COVID-19 on the economy, we feel the timing is right to grow the business by expanding our receivables technology platform. This will help our clients improve cash flow cost effectively, which is critical right now."
"Prior to the listing on the ASX, Credit Clear was funded by some of Australia's most successful technology investors, including Thorney, Ellerston Capital, Little Group and Regal, with these shareholders participating also in the IPO. We thank all of our existing shareholders and are pleased to welcome new shareholders on the Credit Clear journey," he added.
Trading update.
Immediately after listing, the company released a trading update which revealed that its business has continued to grow rapidly.
According to the release, its messaging volume has increased over three-fold in the past twelve months to reach over 2.6 million messages in the September quarter.
This led to revenue for the September quarter increasing 22% compared to the previous quarter.
