Cabot Credit Management Announces Financial Results for the three months ending 31 March 2017

Cabot Credit Management (CCM), a market leader in European credit management services, today announced the financial results for the three months ending 31 March 2017.

“This has been another strong and profitable start to the year for CCM with our EBITDA increasing 18% compared to the same period in 2016, from £56.9m to £67.4m,” said Ken Stannard, Chief Executive Officer, CCM. “We have seen our debt purchase (DP) collections increase by 10% from £87.6m to £96.6m compared to the first quarter of 2016 and in March we achieved our highest ever collection result in our UK DP business.”

During this period we have also successfully acquired a UK based debt contingency business, Orbit, and obtained regulatory approval for our Irish business, Cabot Financial Ireland, on 5 May.”

First quarter highlights for Cabot Credit Management

  • 120-month Estimated Remaining Collections (ERC) increased 7% from £2.0bn to £2.1bn compared to the same period in 2016
  • Debt purchase collections increased 10% from £87.6m to £96.6m compared to the same period in 2016
  • Adjusted EBITDA increased 18% from £56.9m to £67.4m compared to the same period in 2016


Business strategy and operations

  • Service revenues continue to grow, up 22% compared to same period in 2016
  • Leverage down to 4.1x compared to 4.6x at 31 March 2016
  • CCM has obtained regulatory approval for Cabot Financial Ireland from the Central Bank of Ireland.
  • CCM acquired Orbit, a UK based debt contingency business specialising in the UK utilities market
Key financial results Three months to 31 March 2016 Three months to 31 March 2017 % Change
Adjusted EDITDA  £56.9m £67.4m +18%
120 month Estimated Remaining Collections (ERC) £2.0bn £2.1bn +7%
Debt Purchase Collections £87.6m £96.6m +10%
Servicing Revenue £5.5m £6.7m +22%


Teleconference
At 14:00 hours (GMT) on 25 May 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 March 2017, CCM has invested c£2 billion in acquiring portfolios with a Face Value in excess of £21 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 £51 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 8.5 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 specialty 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.

For further information, please contact:
Becky Cimelli
PR Manager, Cabot Credit Management
Tel: +44 (0) 7780 495082
Email: bcimelli@cabotcm.com
Website: www.cabotcm.com

More articles