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New purchase pumps RMG's projected revenues

By Phil Boeyen, ShareChat Business News Editor

Friday 21st July 2000

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Newly listed credit and receivables company, RMG, has more than a quarter of the Australian collections market sewn up following its latest acquisition.

RMG is buying Australia's largest collector of business-to-business debt, Credit Solutions Australia, which has revenues of $12.6 million.

Income from the new company will push RMG's projected revenues to just under $89 million for the year to 30 June 2001.

Chief executive, Paul Cooney, says the purchase brings with it a number of excellent long-term contracts, and will give his company a dominant position in the Australian commercial collections market, complementing its leadership in the consumer and retail sectors.

Mr Cooney says the company also plans to make good use of extra office space the acquired company has in Sydney by expanding RMG's call centre operations there.

He says the call centre expansion is needed as a result of new contracts.

"Since the merger, RMG has won a major contract with one of Australia's leading finance companies, as well as an increased volume of work from the major telecommunications providers, all of whom are now RMG clients."

RMG will be forking over around $11.4 million in cash and shares for Credit Solutions, which has a current staff of about 100 and offices in each mainland state in Australia.

The new acquisition adds to the RMG stable of recent purchases which include the West Australian-based debt recovery agency Laurens & Munns, New Zealand-based Kiwi Factors, Northern Receivables and Southern Receivables, and Melbourne-based Total Credit Management Services.

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