Lowell publishes annual results

European debt purchaser leader in credit management services, Lowell, a has announced its full-year results (ending 31st December 2018).

The results report says that this was another transformational year for Lowell, with focus on growth, diversification, innovation and our customers. The Group has seen strong growth across each of its key metrics: Cash EBITDA up 10%, Portfolio acquisitions of £408m and Estimated Remaining Collections growing 12% to £3.1bn.

Forecasting accuracy continues to underpin the Group’s ability to deliver for customers, clients and investors, with collections at 103% of target.  Collections targets have been achieved or beaten in each of the last 10 years, proving both Lowell’s forecasting accuracy, and the resilience of its model in changing economic conditions. This accuracy follows through in to the Group’s pricing strategy, where performance is consistently above that modelled in our underwriting.

Relationships with clients continue to deliver commercial benefits.  Of the new portfolios acquired in the period, half (50%) came from existing client ‘Forward Flow’ arrangements. Capital-light Third Party servicing arrangements (3PC) also delivered £178m of Cash Income in 2018, with £13bn of client assets under management.

The year saw two major highlights in funding development: in Quarter 1, the Group’s revolving credit facility (RCF) was successfully increased to €455 million, with the support of six additional banks, taking the bank group to thirteen, and in Quarter 3, £255 million of additional funding was successfully raised via a securitisation facility. This facility further diversifies the Group’s funding sources and demonstrates the attractive stable cash flows Lowell creates from its owned portfolios.

Colin Storrar, CFO Lowell, said “2018 has been a transformational year for the Group. We now stand as one of the largest and most successful credit management businesses in Europe, but our development is not over.”

“Our Results for 2018 reflect our growing maturity as a truly pan-European business, our scale and diversification allow us to be flexible across our markets, products and sectors: adapting our business to shifting markets and for greatest returns.”

“We are making significant progress with our digitalisation programme: launching new consumer websites and rolling out robotics for repetitive administration – freeing colleagues to invest time where it is needed most – helping our customers and clients with more complex matters.  Elsewhere we are investing in data: maximising the effectiveness of analysis through machine learning and employing the best people in the field.”

“Our focus remains on a flexible, diverse, values-led and value-driven business, and I am confident that we have a genuine platform for sustainable growth that we can accelerate from in 2019.”