Leeds-based debt purchasing specialist Lowell Group has reported another impressive increase in profit and turnover over the last 12 months.

In the financial year ended 31 August 2008 the Group has again exceeded its financial targets by achieving an adjusted EBITDA* of £56.3 million, up 56 per cent from £36.1 million the previous year. Collections turnover has increased 48.4 per cent from £50.8 million to £75.5 million.

*earnings before interest, tax, depreciation and portfolio amortisation.

As a debt purchaser, Lowell Group buys portfolios of non-performing consumer debts from a range of major blue-chip organisations and then manages the recovery of those debts offering each consumer a repayment solution appropriate to their circumstances.

Over the last 12 months Lowell has been successful in acquiring several new portfolios, including a number from new debt sale clients. The number of consumer accounts managed byLowell has increased from 2.0 million to 3.7 million while the face value of the accounts has risen from £2.3 billion to £4.0 billion.

In March, Lowell Group was publicly recognised as one of the fastest growing businesses in the UK, being named ‘VC-backed Business of the Year in the Fast Growth Business Awards 2008.

In April, Lowell’s senior management teamed up with an independent investment company, to acquire the business from original backers Cabot Square Capital for an undisclosed figure.

Commenting on the Group’s results, chief executive officer James Cornell said:

Overall this has been a fantastic year, especially considering the distraction of the sale and acquisition process which took a large proportion of senior management’s time. It highlights the depth of quality in our management team.

 

Our continued success is underpinned by ongoing investment in market-leading information systems; a highly automated and efficient operating platform; and, not least, a talented and committed workforce. The human aspect is paramount. We work closely with all our debt sale clients, openly sharing information on pricing and collections performance. Also, throughout the collections process we are committed to treating account holders fairly and sympathetically.

 

Next year there is going to be further investment in the operational platform, taking the business to another level again. This includes further automation; further ways to improve collection strategies through the intelligent use of data plus further investment into even tighter quality controls to ensure the customer is dealt with both efficiently and fairly.