Cabot Credit Management has announced its latest financial results for nine months ended 30 September 2017. Highlights include:
- Collections growth of 16% and revenue growth of 13% vs year to date Q3 2016 driven by liquidation initiatives
- Adjusted EBITDA growth of 19% on a year to date basis from cost efficiency measures and scale benefits
- Adjusted EBITDA margin increased from 63.4% to 66.4% from Q3 2016
- Leverage ratio of 4.2x compared to 4.4x at Q3 2016 due to strong Adjusted EBITDA growth
In November, Cabot received FCA approval to acquire Wescot, a leading UK contingency debt collection and business process outsourcing (BPO) services business. In October Cabot announced its intention to float on the London Stock Exchange later this year.
Ken Stannard, Chief Executive Officer Cabot Credit Management, said: “Cabot has again delivered robust financial performance as it prepares to start life as a public company. As we move into a higher interest rate environment, the company’s core skills and ability to identify the right solutions for customers is becoming more important than ever.”
“Efficient and fair debt collection is vital as consumers seek to manage their finances against the backdrop of a steadily deteriorating macroeconomic environment in the UK. Our previous experience of working through downturns will significantly increase our competitive advantage in the medium-term.” In Q3 2017, Cabot deployed £125m of capital at strong risk-adjusted returns, driving growth in its 120 month ERC to £2.3 billion.”
Cabot’s customer-focused collections strategy has seen it increase debt purchase collections by 12% from £266m to £298m over the same period last year, while operational efficiencies and benefits of our scale have allowed the company to continue to expand its Adjusted EBITDA margin to 66% for the nine months to September 2017.