Cabot Credit Management Announces Financial Results For Six Months Ended 30 June 2017
Cabot Credit Management (CCM), a market leader in European credit management services, today announced the financial results for the six months ended 30 June 2017.
“Cabot continued to deliver on its track record of consistent growth with a strong start to 2017. Our Adjusted EBITDA for the first half of 2017 has increased 18% compared to the same period in 2016, from £117.9m to £139.0m, said Ken Stannard, Chief Executive Officer, CCM.
Subsequent to the end of the period, CCM has entered into an agreement to acquire FCA- authorised Wescot, a leading UK contingency debt collection and business process outsourcing (BPO) services business.
To fund this acquisition and refinance existing debt, our 100% indirectly owned subsidiary, Cabot Securitisation UK Limited, has signed a £260 million Asset Backed Senior Facility (the “Facility”). The Facility is non-recourse to Cabot and has an initial size of £260 million, with a £90m accordion. It has a 5-year legal maturity and an advance rate of 57% of 84 month Estimated Remaining Collections (ERC) and a margin of 1 month Libor plus 285 basis points.
Additional half year highlights for Cabot Credit Management
- 120-month Estimated Remaining Collections (ERC) increased 6% from £2.1bn to £2.2bn compared to the same period in 2016
- Debt purchase collections increased 11% from £175.9m to 195.2m compared to the same period in 2016
- Adjusted EBITDA increased 18% from £117.9m to £139.0m compared to the same period in 2016
- First Credit Management Servicing company to receive full Central Bank of Ireland authorisation on 5 May 2017
- Successful acquisition of Orbit, a UK based debt contingency business specialised in the UK utilities markets
Business strategy and operations
- Service revenues continue to grow, up 18% compared to same period in 2016
- Leverage down to 4.1x compared to 4.6x at 30 June 2016
|Key financial results||
Half Year to June
Half Year to June
|120 month ERC||£2.1bn||£2.2bn||+6%|
At 14:00 hours (GMT) on 24 August 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.
Notes to editors
Cabot Credit Management (www.cabotcm.com)
Cabot is one of the largest credit management services providers in Europe and the market leader in the UK and Ireland (based on 120month estimated remaining collections as of 31 December 2016). Cabot provides a range of credit management services across a broad client base that includes some of the largest credit providers in Europe. These services include debt servicing offerings such as early stage collections, business process outsourcing, contingent collections, trace services and litigation activities Cabot has credit management experience across a range of both credit providers (including consumer finance, telecommunications companies, retailers, utilities companies and government agencies) and asset classes (including secured consumer debt, small and mediumsized enterprise debt, and highvalue accounts).
Between Cabot’s inception in 1998 to 30 June 2017, it has invested a combined total of c£2 billion in the acquisition of over £21 billion in face value of purchased loan portfolios and has received £2.9 billion in cumulative collections from purchased loan portfolios. As at 30 June 2017, Cabot’s 120month estimated remaining collections was £2.2 billion, and Cabot’s 180-month estimated remaining collections was £2.5 billion.
With 20 years of debt purchase and debt servicing experience, Cabot was one of the first companies to engage in the credit management services market in the United Kingdom. In March 2016, Cabot became the first large credit management service company in the United Kingdom to be authorised by the FCA, and in May 2017 Cabot became the first credit management service company in Ireland to be authorised by the Central Bank of Ireland.
Customer service and regulatory compliance are at the core of Cabot’s business and culture and are implemented through its collections strategy. Cabot seeks to treat its customers fairly and offer affordable payment solutions, often through longterm payment plans. Cabot has customer satisfaction scores in excess of all UK banking and building society benchmarks and many leading high street banks, and Cabot believes that it has one of the lowest rates of complaints in the debt collection
industry referred to the UK Financial Ombudsman Service. Cabot has won numerous industry accolades, including a 2017 UK Customer Satisfaction Award from the Institute of Customer Service, the CCR Credit Excellence Awards 2016 for Compliance and the Credit Today Award 2016 for Treating Customers Fairly.
For further information, please contact:
PR Manager, Cabot Credit Management Tel: +44 (0) 7780 495082