Thursday, February 27, 2020

Annual Financial Results for year ended 31 December 2019

For immediate release: Thursday 27th February

 

Cabot Credit Management Delivers Growth Whilst Reducing Leverage In Line With Prior Commitments

Financial Results for year ended 31 December 2019

 

Cabot Credit Management (Cabot), a market leader in European credit management services, today announced the financial results for year ended 31 December 2019.

 

Key Financials

12 months to Dec 2019

12 months to Dec 2018

% Change

Adjusted EBITDA 

£375m

£353m

+6%

Net Debt

£1,370m

£1,417m

-3%

120 month ERC*

£2.7bn

£2.7bn

+3%

Debt Purchase Collections

£476m

£453m

+5%

Servicing Revenue

£93.5m

£82.0m

+14%

Leverage

3.7x

4.1x

-0.4x

 *Estimated Remaining Collections

 

Highlights

 

Craig Buick, Chief Executive Officer, Cabot Credit Management, said:

 “I am proud to present a strong set of results in my first quarter as Chief Executive Officer of Cabot.  Over the course of 2019 we have demonstrated the strong cash generative nature of our business by growing earnings whilst reducing our net debt levels and delivering on our deleveraging commitment. 

We continue to see favourable market conditions for our industry, with a continued flow of purchasing opportunities at attractive returns. Demand for our broader credit management services offerings, such as business process outsourcing, trace, and debt collections agency services, remains strong as our clients seek the counsel of a leading, reliable partner to address their own credit management needs.

During 2019 we have undertaken several measures to set ourselves up for continued success, including the reorganisation of our Spanish businesses, extension of our debt maturities, and actively purchasing in partnership with our co-investment partners.

Our customer focus and operational excellence continue to receive well deserved recognition, with our UK legal business (Mortimer Clarke Solicitors) winning three awards this year for its legal practices and our UK debt purchase business winning debt purchaser of the year and best vulnerable customer support strategy at the Collection and Customer Service Awards in early October.”

Ends

 

At 14:00 hours BST on Thursday 27th February 2020, Cabot Credit Management will hold an audio conference presentation on the company’s performance. For further details, please visit the Cabot investor website at www.cabotcm.com/investors.

 

For further information, please contact:


Becky Cimelli
PR Manager, Cabot Credit Management
Tel: +44 (0) 7780 495082
Email: [email protected]
Website: www.cabotcm.com

 

Note to editors

Cabot Credit Management (www.cabotcm.com) is one of the largest credit management services providers in Europe and the market leader in the UK and Ireland, based on expected future gross cash collections. Cabot provides a range of credit management services across a broad client base that includes some of the largest credit providers in Europe.  These services include debt servicing offerings such as early stage collections, business process outsourcing, contingent collections, trace services and litigation activities Cabot has credit management experience across a range of both credit providers (including consumer finance, telecommunications companies, retailers, utilities companies and government agencies) and asset classes (including secured consumer debt, small and medium‑sized enterprise debt, and high‑value accounts).

Between Cabot’s inception in 1998 to 31 December 2019, it has invested a combined total of £2.8 billion in the acquisition of over £31.3 billion in face value of purchased loan portfolios and has received £3.6 billion in cumulative collections from purchased loan portfolios. As at 31 December 2019, Cabot’s 120‑month estimated remaining collections was £2.7 billion, and Cabot’s 180-month estimated remaining collections was £3.2 billion.   

With 21 years of debt purchase and debt servicing experience, Cabot was one of the first companies to engage in the credit management services market in the United Kingdom. In March 2016, Cabot became the first large credit management service company in the United Kingdom to be authorised by the FCA, and in May 2017 Cabot became the first credit management service company in Ireland to be authorised by the Central Bank of Ireland. Cabot has won numerous industry accolades over the years including debt purchaser of the year, best legal services provider, and best vulnerable customer support - strategy at the Collections and Customer Services awards held recently in Manchester in October 2019.