Cabot Credit Management (CCM) has announced the financial results for nine months ending September 2016. Ken Stannard, Chief Executive Officer, CCM said “Our latest results continue to show strong returns and profit growth. During the first nine months of this year, we achieved an adjusted EBITDA of £180m, an increase of 24% compared with the same period in 2015, driven by 20% growth in our DP collections and a 34% growth in our servicing revenue. In early October we issued a £350m bond with a coupon of 7.50% per annum strengthening our position in the market place We increased as well our super senior revolving credit facility from £200m to £250 million. In addition, maturity has been extended by one year to 2019 and margin decreased to 3.25%. This new facility enables us to continue to develop our business and to invest in our existing assets”.
Highlights of Sustained growth for Cabot Credit Management
· 120-month Estimated Remaining Collections (ERC) increased to £2.1bn from £1.9bn for the same period in 2015
· Debt purchase collections increased 20% from £223m to £266m compared with the same period in 2015
· Adjusted EBITDA increased 24% from £146m to £180m compared with the same period in 2015
Business strategy and operations
· CCM secured a £350m bond and increases its super senior revolving credit facility from £200m to £250m.
· CCM appointed a new CEO for Spain, Jose R Cadena, who has over 16 years of experience in the financial sector, and will oversee our growth in the Spanish market.
· Service revenues continue to grow, up 34% compared to 2015
· CCM is progressing its application for the Irish regulatory authorisation (Central Bank of Ireland).