Lowell announces record results

European credit management services, Lowell says it has achieved record full-year results for the 12 months ended 31st December 2021.

The company says collections have continued ahead of expectations across the Group with all regions performing ahead of forecast. Collection performance for the 12 months ended December 2021 vs December 2020 static pool is 106%.

The UK continues to be the Group’s largest region accounting for 60% of Group Cash EBITDA, with £2.2bn 120-month ERC. Purchases were £169m in FY21, down 3% on FY20.

Collection performance in FY21 against the Dec-20 static pool has been strong at 106% of forecast expectations. This represents an encouraging rate of recovery of delayed collections as a result of the management actions taken in FY20. Cash Income has grown 7% year-on-year whilst Cash EBITDA has grown 18% year-on-year, resulting in further Cash EBITDA margin expansion to 70%. Strong cost control and early benefits from cost efficiency programmes have improved the UK margin by 700bps during 2021.

Commenting on today’s results Colin Storrar, Group Chief Executive Officer said “These results demonstrate a record year of delivery and sustainable growth underpinned by strong collection performance, delivery of margin expansion beyond our guidance and strengthened cash generation. We are also proud to release our inaugural Sustainability Report which highlights our transparent disclosure and demonstrates Lowell’s value to all stakeholders.”

“We are encouraged by the continued progress the business is demonstrating as a leading pan-European debt purchaser. Our focus in FY22 is on the successful completion and integration of the Hoist Finance UK acquisition and continuing our sustainable growth by investing above our replacement rate at attractive returns and driving efficiency. We are well-positioned for the exciting opportunities that our growing purchasing pipeline will bring across the next 18-24 months. We expect to invest >£400m in portfolios during FY22 whilst maintaining our balance sheet discipline with leverage in our guided range of 4.0-3.5x and continuing to develop our funding structures.”

The company recently announced the acquisition of Hoist Finance UK.

www.credit-connect.co.uk/news/lowell-to-acquire-hoist-finance/