Cabot Credit Management Improves Its Margins And Reduces Its Leverage In Line With Prior Commitments

Cabot Credit Management (Cabot), a market leader in European credit management services, today announced the financial results for six months ending 30 June 2019.

Highlights

  • Last twelve month Adjusted EBITDA margin improved to 66%
  • Leverage reduced to 3.8x
  • Issuance of new five year €400 million floating rate note and redemption of all 2021 debt maturities

Ken Stannard, Chief Executive Officer, Cabot Credit Management, said: “Cabot has delivered another strong set of results for the period to 30 June 2019 with our Adjusted EBITDA increasing 15% compared to 2018 as a result of our market leading operation in the UK, improving market conditions, and continued demand from leading financial services institutions for our range of credit management services.

During this half year we have continued to receive public recognition of our customer focus and operational excellence, with our UK legal business (Mortimer Clarke Solicitors) winning law firm of the year and our UK debt purchase business winning the best vulnerable customer strategy provider at the Credit Awards held in May.

Importantly, we have in parallel delivered against our previously communicated commitments.  During the first half of 2019, Cabot has demonstrated the strength of our cash generation by deploying £117 million of capital on portfolio purchases whilst keeping our net debt flat.  This cash generation capability has enabled us to reduce our leverage from 4.1x to 3.8x over this period and increase our Adjusted EBITDA margin from 64% to 66%.

In June 2019, Cabot successfully issued a new five year €400m floating rate note which enabled us to redeem all of our 2021 maturities and extend our overall debt maturity profile.”