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Debt buyer Cabot Credit Management in Kings Hill to float on London Stock Exchange

By Chris Price

A credit management company has revealed plans to float on the London Stock Exchange, which it expects will raise about £195 million.

Kings Hill-based debt buyer Cabot Credit Management plans to use the money to pay off outstanding debts and for “general corporate purposes”.

The float, expected in November, will sell about 25% of the company and give a partial exit for its major shareholders Encore Capital Group, the US debt-buying giant, and funds owned by JC Flowers, the private investment firm which rescued Kent Reliance.

Cabot Credit Management has the prestigious 1 Kings Hill Avenue address
Cabot Credit Management has the prestigious 1 Kings Hill Avenue address

Investment banks Goldman Sachs and Morgan Stanley are acting as joint co-ordinators, bookrunners and sponsors of the float.

Cabot is one of the largest credit management firms in Europe and the market leader in the UK and Ireland.

It has invested £2.1 billion buying loan portfolios in its 20-year history, collecting £2.9 billion in repayments over that period.

Its adjusted earnings before interest, taxes and other charges were £247.8 million last year.

Bosses said there is “significant untapped potential” in Ireland, Spain, Portugal and France, where propensity to sell debt has been below markets like the UK.

Cabot Credit Management is based in Kings Hill. Picture: Wayne McCabe
Cabot Credit Management is based in Kings Hill. Picture: Wayne McCabe

Chief executive Ken Stannard said: “This is a very exciting episode in Cabot’s continued growth and development.

“Having built strong and entrusted credit management service businesses in the UK and Ireland we are now well into the construction of leading platforms in three new markets.

“As one of the largest players in Europe it now feels right to be listing on the London Stock Exchange.”

Independent chairman elect Andy Haste added: “At a time when there is an increased focus on consumer credit, Cabot continues to lead the industry as it works to identify affordable solutions, which help customers with their financial recovery.

“I have been impressed by the work that Ken and his team have done in building the business in a responsible and transparent way, focused on delivering fair outcomes and a positive experience for its customers.”

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