Lowell, a European leader in credit management services, today announced its results for the quarter ending 31 March 2020.
Q1 2020 in summary
- Growth in three key metrics: Cash Income, Cash EBITDA and 120m ERC
- Robust collections meeting forecast (100% v Dec 19 static pool)
- Further Cash EBITDA margin widening (350bps YoY)
- Substantial available liquidity of £257 million
- Strong cash generation of £300 million from operating activities
- Leverage maintained at 4.7x
- £58 million capital deployed on portfolio acquisitions during the quarter
- Completion of initial co-investment purchase
- Covid-19 response:
- Prioritising support for and protection of colleagues
- Rapid and seamless transition to remote working, including appropriate risk considerations
- Enhanced customer commitments proactively delivered
- Continued proactive engagement with regulators and government
- Ongoing client liaison and knowledge sharing
Colin Storrar, Group CEO, said: “The first quarter continued the momentum of 2019, and demonstrated a resilient business, with collection performance in line with our forecasts, continued strong cash flow generation and a robust liquidity position.
“We remain pragmatic in our assessment of the purchasing landscape, with a focus on maintaining that strong liquidity level. Where deals arise, we will invest for value, growth and the long-term benefit of the business.
“I am hugely proud of the whole Lowell team across Europe and the way that they have dealt with the situation. Without them we could not support our customers, and we could not deliver our purpose: to make credit work better for all.
“We have the right fundamentals in place: strong foundations; clarity of our purpose and strategy, and a proven ability to adapt at speed. This give me confidence that we will continue to evolve and grow our business in the right way in what will become an increasingly attractive market.”