Cabot Credit Management (CCM), has announced the financial results for twelve months ending December 2016.
Chief Executive Officer Ken Stannard said “This year has been another strong and profitable year for Cabot. We have delivered an adjusted EBITDA of £248 million, an increase of 26% over 2015, whilst simultaneously reducing leverage. These results have been driven by a 17% growth in our DP collections and a 38% growth in our servicing revenue, combined with improved operational efficiencies”.
CCM recently achieved a major milestone for the credit management industry by winning a prestigious Institute of customer service (ICS) award for its Customer Feedback Strategy. This breakthrough sees CCM join other brands such as Virgin Money, Nationwide, BUPA and John Lewis in the hall of fame as current and past ICS winners.
Highlights of sustained growth for Cabot Credit Management
- 120-month Estimated Remaining Collections (ERC) increased to £2.1bn from £2.0bn for the same period in 2015
- Debt purchase collections increased 17% from £305.4m to £358.7m compared with the same period in 2015
- Adjusted EBITDA increased 26% from £196.8m to £247.8m compared with the same period in 2015
Business strategy and operations
- Acquisitions of Non UK portfolios reached 49% of capital deployed in 2016
- Service revenues continue to grow, up 38% compared to 2015
- Leverage reduced to 4.19x
- CCM is progressing its application for the Irish regulatory authorisation (Central Bank of Ireland) for its Cabot Financial Ireland business. It is dealing with substantial information requests as part of the application for full authorisation. A final decision is expected in the first half of 2017.
- CCM continues to leverage its full FCA authorisation which it achieved in February 2016.