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|Lowell GFKL Announces Impressive Q2 Trading Performance|
|Thursday, 11 August 2016|
Lowell GFKL Group, a European leader in credit receivables management, today announces impressive results for its second quarter ended 30 June 2016.
· Q2 cash EBITDA* increased by 19% year on year to £60m
· NPL portfolio acquisitions up 27% to £247m in the last 12 months – well diversified across originating verticals
· 120 month gross Estimated Remaining Collections (ERC) at a record £1.5bn, up 20% from June 2015 and up 11% since Q4 2015
· In excess of £175m of portfolio acquisitions already closed and contractually committed for 2016
· Long-term forward flow agreements signed in H1 give visibility of in excess of £320m spend out to FY-21
· Pricing and collections performance in line with underwriting and model assumptions
*Cash EBITDA as quoted is defined as Garfunkelux Holdco 2 S.A.’s operating profit excluding exceptional items, depreciation and amortization, and adjusted for acquired debt portfolio write ups and amortization amounts as reflected in the unaudited consolidated statement of financial position for Garfunkelux Holdco 2 S.A.
· Acquisition of IS Inkasso Service successfully completed in May
· Integration of Lowell, GFKL and IS Inkasso Service continues to make good progress
· Focus on value creation remains paramount:
o Sharing best practice to increase competitiveness
o Building a strong platform for future Pan-European expansion
o Maintaining a disciplined approach to pricing and investment
· Extension of our value proposition to clients continues through the development of our one stop shop offering
· Compliance with the regulatory environment and the customer experience remain at the forefront of all activities
The outlook for the Group remains positive and the Group is well placed to benefit from the structural drivers of growth in the UK, German and Austrian consumer credit markets.
Commenting on the results, Colin Storrar CFO said: “I am delighted to announce impressive results for the Group this quarter. Cash EBITDA performance in the quarter is particularly pleasing, as is the step change in medium-term, forward flow acquisition visibility. The combination of our H1 trading, along with the future NPL acquisitions we’ve secured to date, means we look to the second half of 2016 and beyond with optimism.”
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