Leeds-based Lowell Group, widely acknowledged as the UK’s leading debt purchasing specialist, has posted a strong increase in earnings for 2009/10.

In the 12 months to 31 August 2010, collections turnover was £105 million, up 22 per cent on the year before (£86.3 million) while adjusted EBITDA* was £76.2 million, up 20 per cent on the previous year (£63.7 million).

*earnings before interest, tax, depreciation and portfolio amortisation

As at end August 2010, Lowell Group was servicing in excess of six million customer accounts with an asset value of £6 billion. The Group has established strong ongoing relationships with many of the UK’s leading debt sellers.  Its portfolios include loan, credit card, store card, home retail credit, overdraft, retail bank and various lower balance debt types, including mobile communications debts.

The Group believes it is in an excellent position to capitalise on the anticipated upturn in debt sale activity over the rest of the year, having recently secured a new £120 million senior debt facility to fund new portfolio acquisitions over the next three years.

In January 2011 Lowell Group launched its new ‘outsource to sell’ operation, Lowell Preston, which is designed to open up new opportunities for debt purchase. The new venture provides creditors the opportunity to outsource accounts to Lowell on a commission basis initially, with the option to sell to Lowell at a later date.   

Chief executive officer James Cornell said:

We are very pleased with these record results, especially at a time when the general market was depressed and many of our competitors have reported less favourable trading figures. Our business strategy continues to find favour with clients, customers and funders alike. It is based on being totally customer focused, treating customers fairly and compliantly, being transparent in our relationships with clients, and being innovative in our approach. It is underpinned by significant ongoing investment in people and technology to help us develop better understanding of our customers, better ways of communicating with them and better ways to help them resolve their outstanding balances.

 

Our prospects for 2010/11 are looking favourable. We achieved strong collections revenues in February and March, and our new ‘outsource to sell operation’ has made a flying start since going live in January. And in terms of feeding the pipeline, we have significant headroom in our funding to take advantage of a number of sales we expect to close out in the next six months.

 

The UK debt purchase landscape is changing and Lowell Group is determined to maintain its position at the forefront of the industry. With that aim in mind we are continuing to explore the possibility of bringing on board new investors as announced in February.