Cabot Credit Management Announces Results For Year to 31 December 2012
Cabot Credit Management (CCM), a market leading acquirer and manager of consumer debt, today announced its annual financial results for the year ending 31 December 2012.
Year to 31 December 2012 Highlights*
- The quarter finished strongly reaching a record performance for CCM ahead of management expectations. Revenue for the year to 31 December 2012 was £161m which generated an adjusted EBITDA of £111m. This compares favourably to the 12 month period ending 31 December 2011 where revenue and adjusted EBITDA were £142m and £90m respectively.
- Collections on purchased portfolios of £147million were 14% greater than the previous 12 month period to 31 December 2011.
- The 120 month Estimated Remaining Collections (ERC) at 31 December 2012 has grown to £908m compared with £790m at 31 December 2011. This represents a 15% growth in the asset base of the company.
- During the year, 41 loan portfolios were purchased at a cost of £99m compared with £92m in the previous 12 month period.
- The adjusted EBITDA was £111m in the year to December 2012 compared with £90m in the 12 months to 31 December 2011.
- In addition to improved revenues, CCM has achieved a 4% reduction in servicing costs and overheads. This is a result of an ongoing drive for efficiency, realising synergies from the integration of the merger and the investment in state of the art IT systems.
- A more permanent funding structure with the issue of £265m high yield bond replacing CCM’s previous syndicated bank facility. The company also secured an additional £50m senior committed revolving credit facility together with a further £25m accordion agreement to provide a layer of further flexible funding.
*Please note that the numbers quoted for the 12 month period to December 2011 represent pro forma numbers as Apex and Cabot were merged in April 2011.
Comments from the CEO of Cabot Credit Management (CCM), Neil Clyne:
“We have continued to see excellent growth across the CCM group this year and have exceeded our targets. The majority of these purchases have been semi-performing portfolios, the fastest growing segment within the debt purchase market, and our results demonstrate our strength in this market.”
“The results also demonstrate our commitment to driving down costs and ensuring our operations remain efficient. This has been achieved by investing in a world class management team, pioneering technologies and realising the benefits from this successful merger.”
“Our staff have played an enormous part in our success this year and we have achieved Investors in People Gold and were ranked 95th in the Sunday Times Top 100 Best Companies To Work For - 2013.”
For further information, please contact:
PR Manager, Cabot Financial
Tel: +44 (0) 7780 495082