25 June 2003 12:00am

The business models of the consolidation plays in the debt collection sector are in the spotlight again, with Collection House yesterday revealing that it reduced its June 2003 full year net profit forecast to between $8 million and $9 million down from a forecast net profit of between $12 million and $13 million, published about two months ago.

The recycled (and unpaid) managing director, and substantial shareholder, John Pearce, is thought to have decided that some of the cost cuts decided on by his predecessor, Russell Templeton, were too short term in nature. In one example...