Cabot Credit Management announces results for 3 month period to 31 March 2013
Cabot Credit Management (CCM), a market leading acquirer and manager of consumer debt, today announced its financial results for Cabot Financial Ltd for the first quarter of 2013 (covering the period from 1 January 2013 to 31 March 2013).
The results show a profitable trading performance and strong growth on the same period in 2012. The highlights of the results are as follows:
- Portfolio purchases of £29 million. Total purchases were £125m in the 12 months to 31 March 2013, compared to £78m in the 12 months to 31 March 2012 showing a 60% increase.
- 84 month Estimated Remaining Collections (ERC), being expected future collections over the next ten years on portfolios owned by CCM at 31 March 2013, up 23% to £750 million.
- Servicing costs ratio (the ratio of servicing costs to revenue) reduced by 5% on the same quarter in 2012, and a reduction of 6% on the cost of servicing portfolios owned by CCM.
- Adjusted EBITDA, a measure of the net cash generated by CCM, increased by 14% over the same period in 2012 to £28 million.
- Collections on purchased portfolios of £38 million, up 12% on the same quarter in 2012.
- Profit before tax of £8 million for the quarter, up 6% on the same quarter in 2012, giving a strong platform for the future growth.
Neil Clyne, CEO, Cabot Credit Management, commented: "
"It has been another strong quarter for our business stretching above our targets and delivering a profit of £8 million (before tax). The market place continues to be buoyant and the size of the pipeline of opportunities is unprecedented and we look forward to realising a strong percentage of these during 2013.
"This quarter saw our collections platforms standardised across the business which presented a few challenges considering the size and scale of the operation, but in due course will deliver faster and more agile business intelligence. It will also enable a single customer view and improved data for pricing decisions amongst other benefits.
"We are progressing well in developing a strong conduct risk management culture as part of our migration to the Financial Conduct Authority. We are continuing to invest in our state-of-the-art software including speech analytic technology which allows us to develop focused and thematic reviews of our compliance and operational processes. In addition we have integrated advanced dispute resolution software into our recoveries platform which allows us to capture and monitor customer outcomes to ensure the fair treatment of our customers."
For further information and copies of the quarterly report, please visit www.cabotcm.com.
For media enquiries, please contact:
PR Manager, Cabot Credit Management
Tel: +44 (0) 7780 495082