Debt firm poised to collect record £1bn over next 10 years
Cabot Credit Management (CCM), the Kent-based purchaser and collector of consumer debt, has notched up a record £1bn of expected future collections.
Call centre staff at Cabot Credit Management handle Comic Relief calls.
So-called Estimated Remaining Collections (ERC) amounts to an all-time high of £1.044 bn over the next 10 years on portfolios held on June 30.
CCM, which employs more than 350 staff at Kings Hill, West Malling, also reported an 18% rise in half-year pre-tax profits to £29 million.
It bought debt worth £84 million in the six months January 1 to June 30. The ratio of servicing costs to revenue fell to 32%, some 11% down on the same time a year ago.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a measure of the net cash generated by CCM, increased 27% to £62 million compared with the same six-month period in 2012.
US debt buyer Encore Capital recently paid £128m for a controlling stake in CCM shortly after CCM was bought by US private equity firm J.C.Flowers & Co, which is also a stakeholder in OneSavingsBank Plc, the banking arm of the mutual Kent Reliance Provident Society and former building society.
Chris Ross-Roberts, chief financial officer, said: “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.”
Cabot chief executive Neil Clyne
Chief executive officer Neil Clyne 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.”
CCM operates four specialists businesses Cabot Financial, Cabot Financial Ireland, Apex Credit Management and Apex Discovery Solutions. It has offices in Kings Hill, Stratford-upon-Avon and Dublin. It was listed in the 2013 edition of The Sunday Times Top 100 Best Companies to Work For.
CCM has purchased assets of £8.4bn, manages more than £1bn of assets on behalf of clients, collects more than £20 million a month, and has shown consistent growth over the past 14 years.
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