Credit Clear (ASX:CCR) share price jumps 10% on Q3 update and Suncorp contract win

The Credit Clear Ltd (ASX:CCR) share price is racing higher after announcing a new contract win with Suncorp and strong Q3 growth…

| More on:
rising asx share price represented by woman jumping in the air happily

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Credit Clear Ltd (ASX: CCR) share price is on course to start the week with a solid gain.

In morning trade, the debt recovery solution provider's shares are up 5% to 76 cents.

At one stage today, the Credit Clear share price was up as much as 10% to 79.5 cents.

Why is the Credit Clear share price storming higher?

Investors have been buying Credit Clear shares this morning after it announced a major new customer win and strong third quarter growth.

According to the release, the company has signed Suncorp Group Ltd (ASX: SUN) as its first major insurance sector client.

The company notes that the signing of Suncorp, for a fully integrated digital service, capped off a very strong third quarter of FY 2021 for Credit Clear.

During the quarter, the company's unaudited revenue grew by more than 30% over the second quarter to over $2.7 million.

This was driven by a 245% year on year increase in digital communications to 2.8 million, with the company experiencing its first 1 million month during March. Management believes this indicates that customer acceptance of Credit Clear's digital platform is continuing to accelerate.

Credit Clear provides businesses with a digital debt recovery technology platform that helps drive smarter, faster, and more innovative financial outcomes. It aims to achieve this by changing the way customers manage their payments through a user experience that the market demands in a digital age.

Credit Clear's Chairman, Gerd Schenkel, said: "Credit Clear's successful entry into the Australian insurance sector and the achievement of continued strong growth in the March quarter highlights the potential for the Company to play a major role in the multi-billion-dollar Australian receivables market."

"Signing long-term fixed fee contracts with enterprise clients creates revenue certainty and shareholder value and demonstrates the flexibility of Credit Clear's fully integrated, SaaS digital business model. We are committed to delivering a world leading interactive communications and digital payments platform for our clients across all major sectors."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a rough day of trading this Tuesday.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Share Gainers

Why this ASX 300 stock is soaring 12% after a disastrous year

This company has had a dramatic reversal of fortunes this Tuesday...

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Core Lithium, Imugene, Lifestyle Communities, and Mineral Resources shares are charging higher

These shares are having a good session. What's going on?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

4 ASX All Ords shares up 315% to 682% in a year!

Investors have sent these ASX All Ords shares flying higher. But why?

Read more »

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a great start to the trading week today.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Austal, Breville, Telix, and Westgold shares are pushing higher today

These shares are starting the week positively. But why?

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Pointsbet, Qantas, Serko, and Yandal shares are pushing higher today

These shares are avoiding the market selloff today. But why?

Read more »