Tuesday, May 12, 2020

Financial Results for three months ending 31 March 2020

For immediate release: Tuesday 12th May

 

Cabot Credit Management Releases  Earnings for First Quarter of 2020

Financial Results for three months ending 31 March 2020

 

Cabot Credit Management (Cabot), a market leader in European credit management services, today announced the financial results for three months ending 31 March 2020.

 

Key Financials

Three months ended 31 March 2020

Three months ended 31 March 2019

% Change

Adjusted EBITDA 

£84m

£90m

-7%

Net Debt

£1,367m

£1,423m

-4%

120 month ERC*

£2.7bn

£2.7bn

+2%

Debt Purchase Collections

£108m

£118m

-8%

Servicing Revenue

£24m

£22m

+9%

Leverage

3.7x

3.9x

-0.2x

 *Estimated Remaining Collections

 

Highlights

 

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

“For many years Cabot has been one of the industry leaders in helping consumers who have encountered some form of personal financial crisis to navigate their way towards financial recovery.  Today, following the outbreak of COVID-19, we are finding more and more consumers requiring this type of expertise to help them.  Cabot is well placed to provide this service for our customers and our clients during this unprecedented period. As the crisis unfolded, Cabot quickly adapted our business to ensure the safety of our employees while continuing to provide the service needed by our customers and clients. 

 

Our results demonstrate that Cabot has been able to continue generating positive free cash flow and deliver Adjusted EBITDA of £369m over the past twelve months.

 

Our balance sheet remains strong as a result of our recent strategy, with significant covenant headroom, available liquidity of £231m, no debt maturities before late 2023 and leverage at 3.7x.   We remain committed to delivering on our leverage target of 3.0-3.5x, over the medium term.” 

 

Ends

 

At 14:00 hours BST on Tuesday 12th May 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

About Cabot Credit Management

 

Cabot Credit Management (CCM) is one of the largest credit management services providers in Europe and a market leader in the UK and Ireland. Headquartered in London, CCM’s mission is to support customers on the road to financial recovery.  CCM provides a range of credit management services across a broad client base that includes some of Europe’s largest credit providers, with debt servicing offerings such as early stage collections, business process outsourcing, contingent collections, trace services and litigation. CCM is an Investors in People Gold accredited organisation and currently employs over 3,000 people across its 18 offices in the UK and mainland Europe.

 

Encore Capital Group, Inc. CCM’s parent company, is an international specialty finance company that provides debt recovery solutions and other related services across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases or services portfolios of receivables from major banks, credit unions and utility providers. Headquartered in San Diego, California, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about Encore can be found at http://www.encorecapital.com. More information about CCM can be found at https://www.cabotcm.com.