Debt collector Credit Corp reported a big increase in earnings in the year to June on the back of more efficient collections and a successful business expansion program. But the company warned that debt was getting expensive and conditions would not be as good in the current year.Credit Corp made a net profit of A$21 million for the year to June - up 55 per cent on 2009/10. The result was based on a 21.6 per cent increase in revenue and significant reductions in finance costs and impairments.Earnings per share rose 53.7 per cent, from 30.5 cents, to 46.9 cents per share. The company's return on equity was 22 per cent.The company spent $92.6 million on debt ledger acquisitions - 42 per cent up on the previous year. The face value of the group's debt portfolio rose from $2.9 billion to $3.2 billion. Despite the big outlay on debt purchases, the company generated $23.8 million of free cash flow (down from $40.5 million in 2009/10).Credit Corp's chief executive, Thomas Beregi, said in a statement: "This strong capital structure will ensure that we are always in a position to meet client requirements while being able to pursue appropriate business expansion initiatives."Credit Corp expanded its operations in several areas during the year: it made its first debt purchases in New Zealand; it made its first insolvency purchases; and it made its first purchases of receivables from telecommunications companies.Last November, the company opened a call centre in Manila, servicing clients in Australia and New Zealand. It plans to reduce costs by locating around 10 per cent of staff there.Beregi said the business would be more subdued in the current year. He expects Credit Corp to spend up to $65 million on debt. Net profit will be around $21 million to $23 million."There is recent market evidence that competitive pricing is now beyond the levels required to meet our minimum return criteria," he said."If this continues we will maintain a disciplined approach and may reduce our purchasing in the domestic market in the short term."