Cabot announces DCA acquisition

Cabot Credit Management (CCM) has announced its financial results for the three months ending 31 March 2017. As part of the results, Cabot announced that it has acquired Orbit Debt Collection, a UK based debt contingency business who specialises in the Utilities sector. In addition, Cabot has also obtained regulatory approval for the Irish business, Cabot Financial Ireland, on 5 May.

Ken Stannard, Chief Executive Officer, CCM said “This has been another strong and profitable start to the year for CCM with our EBITDA increasing 18% compared to the same period in 2016, from £56.9m to £67.4m,”  “We have seen our debt purchase (DP) collections increase by 10% from £87.6m to £96.6m compared to the first quarter of 2016 and in March we achieved our highest ever collection result in our UK DP business.”

“During this period we have also successfully acquired a UK based debt contingency business, Orbit, and obtained regulatory approval for our Irish business, Cabot Financial Ireland, on 5 May.”

 First quarter highlights for Cabot Credit Management

• 120-month Estimated Remaining Collections (ERC) increased 7% from £2.0bn to £2.1bn compared to the same period in 2016
• Debt purchase collections increased 10% from £87.6m to £96.6m compared to the same period in 2016
• Adjusted EBITDA increased 18% from £56.9m to £67.4m compared to the same period in 2016

Business strategy and operations

• Service revenues continue to grow, up 22% compared to same period in 2016
• Leverage down to 4.1x compared to 4.6x at 31 March 2016
• CCM has obtained regulatory approval for Cabot Financial Ireland from the Central Bank of Ireland.
• CCM acquired Orbit, a UK based debt contingency business specialising in the UK utilities market

Key financial results	Three months to 31 March 2016	Three months to 31 March 2017	% Change
Adjusted EBITDA	£56.9m	£67.4m	+18%
120 month Estimated Remaining Collections (ERC)	£2.0bn	£2.1bn	+7%
Debt Purchase Collections	£87.6m	£96.6m	+10%
Servicing Revenue	£5.5m	£6.7m	+22%