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Cabot Credit Management Announces Results for 3 Months ending 31 March 2014

Cabot Credit Management, a market leading acquirer and manager of consumer debt, is pleased to announce its results for 3 months ending 31 March 2014.

Highlights

The purchase of the Marlin Financial group builds on sustained growth in the historic Cabot Credit Management group

  • 64% uplift in 120 month ERC, compared to Q1 2013, which is now in excess of £1.5 billion
  • Debt purchase collections of £50.0 million for Q1 2014 represent a 31% increase compared to Q1 2013
  • Adjusted EBITDA of £36.8 million for Q1 2014 represents a 30% increase compared to Q1 2013

Strong purchasing and robust funding

  • £88.8 million spend on portfolio purchases in Q1 2014 represents 72% of the total amount spent in 2013
  • Issue of further Senior Secured Notes of £175 million during March 2014 at a coupon rate of 6.5%

Business development

  • New litigation capability following the acquisition of Marlin Financial Group Ltd in February 2014
  • Encore India call centre pilot programme up and running in Q1 2014 with a collections team of 32 at the end of March 2014

Key financial results

                                                              Q1 2014             Q1 2013                    % Change

Adjusted EDITDA                                 £36.8m                  £28.3m                     + 30%

Debt Purchase Collections                   £50.0m                  £38.3m                      + 31%

Revenue                                              £53.7m                  £41.9m                     + 28%

Portfolio purchases                              £88.8m                   £29.3m                     + 203%

Cost Income Ratio                               32.3%                    32.5%                       + 1%

 

Ken Stannard, Chief Executive Officer, commented:

“It has been an exciting quarter for Cabot Credit Management.

Following the acquisition of the Marlin Financial group, we now have the ability to price, acquire and manage a much broader variety of paying and non-paying portfolios.

We are ahead of our integration plan and are already seeing significant synergies materialising from our existing assets.  Over the coming months we will continue to leverage the combined skills of the two businesses to build on our position as market leader.”

 

About Cabot Credit Management

Cabot Credit Management is a market leading acquirer and manager of consumer debt. Divided into five specialist businesses, Cabot Financial, Cabot Financial Ireland, Apex Credit Management, Apex Discovery Solutions and Marlin Financial Group, it covers debt purchase, contingency collections, and customer tracing.

The combined Cabot Credit Management group has purchased assets of £11.2 billion, manages over £1 billion of assets on behalf of clients, collects over £25m per month on portfolios it owns and on behalf of clients, and has a 15 year unbroken track record of steady growth.

The combined Cabot Credit Management group employs approximately 870 people with offices in Kings Hill, Stratford-upon-Avon, Dublin, Worthing and London. The company prides itself on its ethical values and high standards. It has an impressive list of accolades including achieving Investors in People Gold and Champion awards and attaining a place in the Sunday Times Top 100 Best Companies To Work For – 2013 and Marlin being ranked in 30th in the Sunday Times Profit Track 100 - 2013, the only debt purchaser to be named. In addition Cabot Financial has a Quality Management System ISO 9001 since 2008.

The controlling shareholder of Cabot Credit Management is Encore Capital Group, an international speciality finance company providing debt recovery solutions for consumers and property owners across a broad range of assets.

 

For Media Enquiries:                                         For Investor Relations:

Becky Cimelli                                                    Email:   investorrelations@cabotcm.com

PR Manager, Cabot Credit Management           

Tel: +44 (0) 7780 495082                                  

Email: bcimelli@cabotcm.com                         

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