Lowell Q1 2019 Results: Strong momentum carried forward

Lowell, a European leader in credit management services, has announced positive quarterly results, for the period 1 January to 31 March 2019, showing the strong momentum carried over from 2018.

Q1 in summary

  • Strong pipeline across all regions; £94 million capital deployed on portfolio acquisitions
  • 3PC contribution to Cash Income at 20%
  • Continue to benefit from substantial available liquidity of £361 million
    • Leverage management in line with expectations at 5.1x
    • Backbook continues to perform ahead of forecast

Colin Storrar, CFO, said: “I am pleased with the start we have made to the year. These results are the natural progression of a maturing business capitalising on its scale and the strong momentum created last year.

“We have delivered growth across our key metrics. Cash EBITDA growth has continued to outperform Cash Income growth as we benefit from an increase in margin. Our 3PC business contributed 20% to Cash Income: providing an important capital-light source of revenue. Our 120m ERC has grown 11% year-on-year to over £3.1 billion, and our collections performance in the first quarter has continued to perform above expectations – a clear demonstration of our forecasting accuracy and prudent approach to pricing.

“The balance sheet is central to our growth plans – we are committed to reducing leverage in our business, and are on track to deliver this.

“We have a healthy pipeline of opportunities across our regions, at increasingly attractive returns. We have made a positive start to 2019, having deployed £94 million in the first quarter. The outlook for our business remains very strong.”