Lowell collections performance ahead of expectations

12th November 2021

European debt purchaser, Lowell has said that collections have continued to perform ahead of expectations across the Group with all regions performing ahead of forecast.

The company said, in its latest results for the 3 months ended 30th September 2021, that the UK, the recovery of the deferred collections has continued ahead of forecast expectation. The strong collection recovery supports the management judgement taken in June 2020  that collections were delayed and not lost because of the customer-centric actions taken during Q2-20 to reduce collection activities in the UK. The Group’s performance vs Dec-19 Static Pool stands at 97% as of September 2021.

For Cash Income and Cash EBTIDA the comparative period included the previously disclosed strategic asset sales and also the benefit from a period of reduced collection activity, and associated costs, in response to customer centric actions taken due to Covid-19. However, underlying performance here continues to show encouraging growth as the company consistently demonstrate strong collection performance whilst beginning to increase the level of capital deployed on NPL acquisitions above FY20 levels.

NPL acquisitions have increased through 2021 in line with guidance. Increasing levels of acquisitions will support future top line growth moving into 2022 as the Group benefits from further growth in its frontbook.

Colin Storrar, Group Chief Executive Officer, said “These results demonstrate another quarter of sustainable growth underpinned by strong collection performance and significant progress towards our margin guidance which will now be delivered by FY21, ahead of target. We continue to make excellent progress towards the launch of our inaugural Sustainability Report next year.”

In the company statement, Lowell said that as we approach the end of the year, we are encouraged by the continued progress the business is demonstrating as a leading pan-European debt purchaser. Improving efficiency remains a key target for the Group and the progress here is evident with the anticipated delivery of our guidance ahead of target. Whilst the market remains competitive, we are well positioned for the exciting opportunities that our growing purchasing pipeline will bring across the next 18-24 months and we expect to end 2021 strongly, delivering on our FY21 purchasing guidance of >£350m and leveraging our sustainable platform for future growth.