Cabot Credit Management Announces Financial Results for twelve months ending December 2016
Cabot Credit Management (CCM), a market leader in European credit management services, today announced the financial results for twelve months ending December 2016.
“This year has been another strong and profitable year for Cabot. We have delivered an adjusted EBITDA of £248 million, an increase of 26% over 2015, whilst simultaneously reducing leverage. These results have been driven by a 17% growth in our DP collections and a 38% growth in our servicing revenue, combined with improved operational efficiencies” said Ken Stannard, Chief Executive Officer, CCM.
CCM recently achieved a major milestone for the credit management industry by winning a prestigious Institute of customer service (ICS) award for its Customer Feedback Strategy. This breakthrough sees CCM join other brands such as Virgin Money, Nationwide, BUPA and John Lewis in the hall of fame as current and past ICS winners.
Highlights of sustained growth for Cabot Credit Management
- 120-month Estimated Remaining Collections (ERC) increased to £2.1bn from £2.0bn for the same period in 2015
- Debt purchase collections increased 17% from £305.4m to £358.7m compared with the same period in 2015
- Adjusted EBITDA increased 26% from £196.8m to £247.8m compared with the same period in 2015
Business strategy and operations
- Acquisitions of Non UK portfolios reached 49% of capital deployed in 2016
- Service revenues continue to grow, up 38% compared to 2015
- Leverage reduced to 4.19x
- CCM is progressing its application for the Irish regulatory authorisation (Central Bank of Ireland) for its Cabot Financial Ireland business. It is dealing with substantial information requests as part of the application for full authorisation. A final decision is expected in the first half of 2017.
- CCM continues to leverage its full FCA authorisation which it achieved in February 2016.
|Key financial results||Twelve months to Dec 15||Twelve months to Dec 16||% Change|
|120 month Estimated Remaining Collections (ERC)||£2.0bn||£2.1bn||+7%|
|Debt Purchase Collections||£305.4m||£358.7m||+17%|
At 14:00 hours (GMT) on 16 March 2017, 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 Credit Management
Cabot Credit Management (CCM) is a market leader in credit management services including debt purchasing, contingency collections, business process outsourcing and litigation. The Group encompasses four UK businesses 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 three European businesses Cabot Financial Ireland, Gesif and Nemo.
From its inception in 1998 to 31 December 2016, CCM has invested c£1.9 billion in acquiring portfolios with a Face Value in excess of £20 billion. CCM has an ERC (estimated remaining collections) of £2.1 billion. It manages in the region of £3 billion of assets on behalf of clients, collects on average £47 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 18 years without exception.
The Group, which has purchased circa 8.3 million customer accounts, employs approximately 1,550 people with offices in Kings Hill, Brackley, Worthing, London, Dublin, Madrid, Paris, Lyon and Marseille. 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 and 2016, Credit Strategy
- Customer Feedback Strategy Award 2017, Institute of Customer Service
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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