Cabot Credit Management Announces Strong Half Yearly Financial Results
Cabot Credit Management (CCM), a market leading acquirer and manager of consumer debt, today announced its half yearly financial results for Cabot Financial Limited for 2013 (covering the period from 1 January 2013 to 30 June 2013).
The highlights are as follows:
• 120 month Estimated Remaining Collections (ERC) which represents the expected future collections over the next ten years on portfolios owned by CCM as at 30 June 2013 reached an all time high of £1.044 billion.
• 84 month ERC was up 35% to £827 million.
• Portfolio purchases in the second quarter were £55 million. Total purchases for the six months to 30 June 2013 were £84 million.
• Our servicing costs ratio (the ratio of servicing costs to revenue) continued to improve to 32%, a reduction of 11% compared with the same six month period in 2012.
• Adjusted EBITDA, a measure of the net cash generated by CCM, increased 27% to £62 million compared with the same six month period in 2012.
• Collections on purchased portfolios of £81 million were 19% greater than the same six month period in 2012.
• Operating profit before tax of £29 million increased 18% compared with the same period in 2012.
Chris Ross-Roberts, CFO, Cabot Credit Management, commented:
“Attaining ERC in excess of £1 billion is a first for our industry and a real milestone for our company. The second quarter marks another strong quarter for our business where we exceeded our targets and delivered pre-tax profit in excess of £14 million.
The improvement in our servicing costs enables us to retain more of our collections, which is reflected in the improving EBITDA and increasing profit margins.”
Neil Clyne, CEO, Cabot Credit Management, added:
“Delivering fair outcomes for our customers and a strong commitment to compliance and ethical behaviour remain the foundation for Cabot Credit Management’s continuing growth.
Also this quarter, Encore Capital Group completed its acquisition of a controlling stake in our company, which will enable us to leverage best practices and further enhance our market leading position.”
About Cabot Credit Management
Cabot Credit Management is a market leading acquirer and manager of consumer debt. Divided into four specialist businesses, Cabot Financial, Cabot Financial Ireland, Apex Credit Management and Apex Discovery Solutions, it covers debt purchase, contingency collections and customer tracing.
Cabot Credit Management has purchased assets of £8.4bn, manages over £1bn of assets on behalf of clients, collects over £20m per month on portfolios it owns and on behalf of clients, and has a 14 year unbroken track record of steady growth.
The Group employs approximately 700 people with offices in Kings Hill, Stratford-upon-Avon and Dublin. The company prides itself on its ethical values and high standards and has an impressive list of accolades including achieving Investors in People Gold award (accredited for 3 years) and attaining a place in the Sunday Times Top 100 Best Companies To Work For - 2013. In addition, Cabot Financial has held a Quality Management System ISO 9001 since 2008.
The controlling shareholder of Cabot Credit Management is Encore Capital Group, a leading U.S. provider of debt management and recovery solutions, with the remaining equity being held by a fund advised by J.C. Flowers & Co and management.
At 15.00 hours on 20th August 2013, Cabot Credit Management will hold an audio conference presentation on the company’s performance year to date 30 June 2013.
To access this conference, participants will need to register in advance via the investor section of the Cabot Credit Management website: www.cabotcm.com.
For further information and copies of the quarterly report, please visit www.cabotcm.com or contact:
For Media Enquiries:
Becky Cimelli, PR Manager
Cabot Credit Management
Tel: +44 (0)7780 495 082
For Investor Relations:
Chris Ross-Roberts, Chief Financial Officer
Cabot Credit Management
DDI: +44 (0)1732 524 744
Mob: +44 (0)7789 392 038