Cabot Financial Ltd Announces Financial Results for the 12 month period ending 31 December 2015

Cabot Financial Ltd, a market leader in credit management services, today announced the financial results for the period ending 31 December 2015.

“This year we have achieved strong returns and profitable growth. Our total revenues were up by 34% to £251.1 million compare to £186.9 last year,” said Ken Stannard, Chief Executive Officer. “We have begun to embed our new acquisitions dlc, Mortimer Clarke Solicitors and Spanish contingent collections platform, Gesif, which has given us an established platform for European expansion in 2016 and beyond."

“Our portfolio purchases reached £288.9m this year, up 27% from 2014, which keeps us positioned as one of the largest debt purchases in Europe. With our ERC now reaching £2 billion, we are well positioned to reap the benefits of scale and longevity in the markets we operate in.

“We have sustained a prudent and stable funding structure this year and, as we have just received our UK FCA authorisation, we are in a very strong position for continued growth in 2016.”

Highlights

Sustained growth for Cabot Financial Ltd

 120-month Estimated Remaining Collections (ERC) increased to £2.0 billion from £1.6 billion for the same period in 2014

 Debt purchase collections increased 24% from £247.1 million to £305.4 million compared to the same period in 2014

 Adjusted EBITDA increased 14% from £173.2 million to £196.8 million compared to the same period in 2014

Business strategy and operations

 Continued growth in non UK business, with £37.4 million of non UK portfolio purchases in Q4’15 and non UK servicing revenues up 68% compared to Q4’14

 Following the purchase of dlc this year, a new centre of excellence is being created from its base in Brackley which will also house the Apex contingency business as well from mid 2016

Regulatory

 On 11 March 2016 Cabot Credit Management obtained FCA authorisation
 

Key financial results Twelve months December 15 Twelve months December % Change
Adjusted EDITDA £196.8m £173.1m +14%
120 month Estimated Remaining Collections (ERC) £2.0bn £1.6bn +22%
Debt Purchase Collections £305.4m £247.1m +23%
Debt Purchase Collections Plus Servicing Income £324.1m £263.4m +23%
Portfolio Purchases £288.9m £227.3m

+27%



Teleconference

At 14:00 hours (GMT) on 17 March 2016, Cabot Credit Management will hold an audio conference presentation on the company’s performance. For further details, please visit the Cabot investor website at www.cabotcm.com/investors.

About Cabot Financial Ltd


Cabot Financial Ltd is a market leader in credit management services including debt purchasing, contingency collections, business process outsourcing and litigation. The Group encompasses four UK businesses namely including Cabot Financial, dlc, Apex Credit Management, and Mortimer Clarke Solicitors (a specialist litigation law firm, authorised and regulated by the Solicitors Regulation Authority) and two European businesses Cabot Financial Ireland and Gesif.


From its inception in 1998 to 31 December 2015, the Cabot Financial (Cabot) Group, including acquisitions, has invested £1.7 billion in acquiring portfolios with a Face Value in excess of £17.5 billion. Cabot has an ERC (estimated remaining collections) of £2.0 billion. It manages in the region of £1 billion of assets on behalf of clients, collects over £45 million per month on portfolios it either owns or services on behalf of clients, and has delivered a consistently strong financial performance, having grown its business in each of the last 16 years without exception.

The Group, which has purchased over 7 million customer accounts, employs approximately 1,300 people with offices in Kings Hill, Brackley, Dublin, Worthing, Madrid, and London. The company prides itself on its ethical values, customer service and high standards. It has an impressive list of accolades including:

 Investors in People Gold and Champion awards
 Treating Customers Fairly Award 2015, Credit Today

The controlling shareholder of Cabot Financial is Encore Capital Group, an international speciality finance company providing debt recovery solutions. The remaining equity is held by a fund advised by J.C. Flowers & Co., in addition to company management.

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