Cabot Credit Management Announces Financial Results for the six month Period ending June 2016

Cabot Credit Management (CCM), a market leader in European credit management services, today announced the financial results for the six month period ending June 2016.

“Our half year results show strong returns and profit growth. During the first half of this year, we achieved an adjusted EBITDA of £117.9m, an increase of 29% compared with the same period in 2015, driven by 24% growth in our DP collections and a 40% growth in our servicing revenue” said Ken Stannard, Chief Executive Officer, CCM.

“We have continued to strengthen our footprint in Europe with active operations now in five European markets following our first capital deployment in Portugal during the quarter. Our non UK assets now represent 13% of total 120 month ERC (Estimated Remaining Collections).

“CCM continues to leverage its place in the market as the first major debt purchaser to achieve its UK FCA authorisation and is progressing well with its application for the Irish regulatory authority (Central Bank of Ireland).”

Highlights of Sustained growth for Cabot Credit Management

• 120-month Estimated Remaining Collections (ERC) increased to £2.07bn from £1.92bn for the same period in 2015
• Debt purchase collections increased 24% from £141.6m to £175.9 m compared with the same period in 2015
• Adjusted EBITDA increased 29% from £91.1m to £117.9m compared with the same period in 2015

Business strategy and operations

• Continued growth in our non UK business with 138% increase in non-UK revenues as a result of significant capital deployment in Spain and Ireland in the past year
• Service revenues continue to grow, up 40% compared to 2015
• CCM has successfully commenced its new UK digital service to enhance its customers experience
• Successful execution of the closure of our Stratford site with contingent collections operations now merged into our existing business in Brackley
• No noticeable impact of Brexit upon collections performance. Existing hedging strategy protected the business from FX volatility

Regulatory

• On 11 March 2016 Cabot Credit Management obtained FCA authorisation and is the first major debt purchaser and servicer to achieve it.
• There has been significant advances in CCM’s application for the Irish regulatory authorisation (Central Bank of Ireland).

Teleconference

At 14:00 hours (GMT) on 25 August 2016, Cabot Credit Management will hold an audio conference presentation on the company’s performance. For further details, please visit the Cabot investor website at www.cabotcm.com/investors.

About Cabot Credit Management

Cabot Credit Management (CCM) is a market leader in credit management services including debt purchasing, contingency collections, business process outsourcing and litigation. The Group encompasses four UK businesses including Cabot Financial, dlc, Apex Credit Management and Mortimer Clarke Solicitors (a specialist litigation law firm, authorised and regulated by the Solicitors Regulation Authority) and three European businesses Cabot Financial Ireland, Gesif and Nemo.

From its inception in 1998 to 30 June 2016, CCM has invested c£1.9 billion in acquiring portfolios with a Face Value in excess of £20 billion. CCM has an ERC (estimated remaining collections) of £2.1 billion. It manages in the region of £1 billion of assets on behalf of clients, collects on average over £47 million per month on portfolios it either owns or services on behalf of clients, and has delivered a consistently strong financial performance, having grown its business in each of the last 16 years without exception.

The Group, which has purchased circa 8 million customer accounts, employs approximately 1,550 people with offices in Kings Hill, Brackley, Worthing, London, Dublin, Madrid, Paris, Lyon and Marseille. The company prides itself on its ethical values, customer service and high standards. It has an impressive list of accolades including:

• Investors in People Gold and Champion awards
• Treating Customers Fairly Award 2015 and 2016, Credit Strategy

The controlling shareholder of Cabot Financial is Encore Capital Group, an international speciality finance company providing debt recovery solutions. The remaining equity is held by a fund advised by J.C. Flowers & Co., in addition to company management.

For further information, please contact:

Becky Cimelli
PR Manager, Cabot Credit Management

Tel: +44 (0) 7780 495082
Email: [email protected]
Website: www.cabotcm.com