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Cabot Credit Management announces strong performance across all key financial metrics through the third quarter of 2013

Cabot Credit Management (CCM), a market leader in consumer debt management and recovery solutions, announces financial results for Cabot Financial Limited , covering the nine month period from 1 January 2013 to 30 September 2013, which reflect the continuation of its 14- year unbroken track record of steady growth.

“During the last nine months, Cabot Credit Management has experienced continued improvement in the key financial metrics reflecting the significant investment in  loan portfolio purchases and the resulting increase in our scale", said Chris Ross-Roberts,  Cabot Credit Management’s CFO. “In the last few months we have also started working closely with Encore Capital to leverage their low-cost and efficient operating site in India”, Ross-Roberts added.

"In addition, we are starting to see benefits from our new proprietary collections platform, which we installed at the beginning of the year.  This will help drive additional operational efficiency and further lower our servicing costs ratio.”

Third Quarter of 2013 Highlights:

New £100m 8.375% 2020 bond issued in August.

Servicing costs ratio (the ratio of servicing costs to revenue) declined to 31.6%, a reduction of 0.3% compared with the same nine month period in 2012.

Adjusted EBITDA, a measure of the net cash generated by CCM, increased 18% to £95 million, compared with the same nine month period in 2012.

120-month Estimated Remaining Collections (ERC) of £1.05 billion up 26% over 3Q2012; 84-month ERC of £0.83 billion up 24% over 3Q2012.

Revenue increased to £135.9 million, 16% over 3Q2012.

Portfolio purchases increased to £101.6 million,  77% over 3Q2012.

Collections on purchased portfolios of £124 million increased 16% compared with the same nine month period in 2012.

“Our relationship with Encore gives us a great opportunity to move into additional markets without losing our focus on semi-performing assets”, said Neil Clyne, Cabot Credit Management’s CEO. “These assets generate the long-term, highly predictable annuity streams that form the backbone of our ERC.  This will enable us to build our market share and further accelerate the growth of the Cabot group. "

"We continue to invest in compliance as we move toward working with the FCA," Clyne added. "Our continued focus on the customer experience, combined with the scale of our business, means we are well positioned to meet new regulatory requirements. This will ensure that we remain one of the key partners for UK debt originators.”

Clyne concluded by saying, “We are delighted to welcome Peter Crook, from Provident Financial Group, as an Independent Director to our board. His deep experience in the financial services industry and insights into our consumers will prove invaluable as we continue to explore new growth opportunities.”

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 £8.6 billion, manages over £1 billion of assets  on behalf of clients, collects over £20 million 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.

Teleconference

At 15.00 hours on 19th November 2013, Cabot Credit Management will hold an audio conference presentation on the company’s performance year to date ending 30 September 2013.

To access this conference please follow the instructions below:

Participant Access – Please dial in 5-10 minutes prior to the start time using the number / Confirmation Code belo

Participants,  Local - London, United Kingdom:
(Accessible but not local across Europe )

+44 (0)20 3427 1900


Participants,  Local - New York, United States of America:

+1212 444 0412

 

Confirmation Code:  7501600

 

For further information please visit www.cabotcm.com or contact:

For Media Enquiries:                                           For Investor Relations:

Becky Cimelli                                                       Chris Ross-Roberts

PR Manager, Cabot Credit Management            Chief Financial Officer, Cabot Credit Management

Tel: +44 (0)7780 495082                                     DDI:     +44 (0)1732 524744

Email: bcimelli@cabotcm.com                             Mob:    +44 (0)07789 392038

                                                                             Email:   crossroberts@cabotcm.com

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