Cabot expects collections rates to fall

Debt purchaser Cabot Credit Management latest business results have shown that the company expects a fall in collection rates as the business adapted to protect employees and serve our customers as COVID-19 crisis unfolded

Delivered Adjusted EBITDA was £369 million over the last twelve months.

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.”