CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow 1st Credit collections rise by 18% to £50m
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
1st Credit collections rise by 18% to £50m PDF Print E-mail
Tuesday, 19 April 2016
1st Credit (Funding) Ltd, the UK’s leading ethical debt purchase and collection company, increased collections revenue to £50.1m in 2015 – up 18% from £42.5m the previous year.

The FCA-authorised company attributes the rise in collections to a high level of purchasing in 2014. 1st Credit has a strong back book and has achieved an increase in the number of long-term arrangements secured, with over 100,000 customers paying each month.

The company reports EBITDA of £33.2m for 2015, up from £27.3m in 2014. While its 10-year ERC has fallen slightly from £221m to £210m, it is confident of purchasing above maintenance levels in 2016.

These results have been achieved in a supply-constrained and highly competitive market. Despite lower levels of supply, 1st Credit purchased £20.7m of debt in 2015, maintaining pricing discipline and increasing the quality of the portfolios acquired. It retains a place on all major bank purchasing panels.

1st Credit pursues a strategy of agreeing long-term affordable arrangements with customers, helping them to reach their debt free day. Arrangements now stand at £307m, up from £278m in 2014. This has been achieved partly through successful legal activity. During 2015, 19.7% of collections derived from legal activity.

Eddie Nott, CEO, commented: “We continue to invest in legal opportunities where we identify customers with the means to resolve their financial situation who do not engage with normal contact strategies. This has been a successful approach, contributing to our increased collections revenue.”

As well as continuing to develop its ethical approach, 1st Credit completed its IT outsourcing project in 2015, giving a more flexible and responsive infrastructure while providing increased security and back up capability. A number of other IT projects were also implemented during the year, including a query management system which improves response times for customer queries and assists enquiry handling with the original debt owner. Other initiatives include a ‘My Benefits’ scheme that gives customers discounts on their everyday spending and a portal to allow easier online payments, which is scheduled for full launch in mid-2016.

Chairman Leith Robertson said: “We are confident that 1st Credit is in a strong position for 2016, with high quality purchased portfolios and costs tightly controlled. We expect to grow ERC this year. We are also pleased to have completed integration into the new regulatory regime, and have secured full FCA-authorisation. We will continue to innovate to improve the customer experience and increase efficiencies in our collections process.”

He added: “Our arrangement book has continued to grow in 2015, setting up a long tail of future cash receipts. Over 70% of our arrangements are from purchases more than two years old, creating a strong and predictable annuity stream. ”
 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197