European leader credit management specialist Lowell has provided a preliminary trading update for the quarter ending 30th September 2020 which indicates resilient collections figures.
The results indicate that collections activity and performance has improved after a pause during the initial stage of the pandemic. The business saw a cash EBITDA increase of 9%, compared to the same three-month period in 2019.
The company says that collections have continued to demonstrate resilience with figures at 93% year to date. The UK business has seen the largest impact on collections, principally driven by the management actions undertaken to protect customers during the early stages of the COVID pandemic. Management actions in temporarily reduced outbound customer contact activity and paused new litigation activity, accounting for approximately 90% of the impact on collections.
Colin Storrar, CEO of Lowell, said “We continue to deliver on the targets we set. I am delighted to see us performing on all measures with earnings up, collections remaining robust, costs being managed effectively and further improvements on leverage. As we know, there will be opportunities on portfolios and these results show we are in a strong position, financially and with our liquidity, to take advantage. I’m proud of the work the team, across the business, have done to drive this business forward in spite of challenges COVID presents. Our performance underlines how well we’re positioned for the future.”