Lowell Group, a UK leader in consumer debt purchase and recovery, today announces consolidated Annual Financial Results for the year ended 31 August 2012.

Highlights

  • Estimated remaining collections (ERC) of £428.8 million at 31 August 2012, up 24% (£344.7 million as of 31 August 2011)
  • Significant deleveraging achieved LTV of 57% at bond issuance down to 45% as at 31 August 2012
  • Unlevered net IRR continues to be strong across the portfolio at 24.2%
  • Collections up 13% at £135.9m (2011: £120.1m)
  • Adjusted EBITDA for the year was £95.5 million, up 12% (2011: £85.2 million)
  • Portfolio purchases up 30% at £90.7m.

Commenting on the results, James Cornell, CEO, said:

“I am pleased to report continued strong progress with Estimated Remaining Collections (ERC) up 24% and adjusted EBITDA up 12% compared to last year.

“It was also a record year for portfolio purchases. We invested £90.7 million – a 30% increase on the previous year – on the acquisition of 113 new portfolios, which saw us reach the milestone of managing 10 million customer accounts with a face value of £9.0 billion.  As a result our total asset base continues to show significant growth. Over the year, collections grew 13% from £120.1 million to £135.9 million.

“Purchases were spread across different sectors as we continue to diversify assets as part of our risk management strategy.  We are making calculated progress in new sectors, including utilities and government debt and have strengthened our management team for the future with key new positions in compliance, customer management, technology and business development.

“Looking forward, we anticipate the strong, underlying market growth will continue and we are well placed to capitalise on it. Our collections performance continues to be strong and we have signed strategic partnerships with key clients on a ‘forward flow’ basis to secure debt purchase volumes going forward.”

In 2012, Lowell Group was ranked as the leading credit management business across Europe for the fifth consecutive year by the strategic consulting firm OC&C*, awarded Investors in People Gold and named Credit Today’s Debt Purchaser of the Year for the third time.

*Joint 1st in 2012 with Arrow Global

Ends

For further information contact Carol Ord, head of communications, Lowell Group. Tel. 0113 2856570, E-mail carol.ord@lowellgroup.co.uk Mobile 07814 430330

Lowell Group, the UK’s leading purchaser of non-performing consumer debt portfolios, today announces two key appointments to its executive board plus a new senior management appointment.

Colin Storrar is appointed Chief Financial Officer (CFO). Colin joins Lowell from HSBC Bank PLC where he has worked as CFO for both First Direct and HSBC’s wider contact centre and digital channels managing a multi-billion pound asset base. More recently, Colin has been the general manager with responsibility for contact centre provision, a role where he has led over 8,000 people both in the UK and overseas. Colin previously held a number of senior finance roles for GE Capital Bank and GE Money, and in a career covering 20 years, has built a significant track record in all aspects of financial management coupled with a deep understanding of operations. Colin is a qualified chartered accountant who spent nearly ten years with Arthur Andersen.

Given the strategic importance of information technology to its growth ambitions, Lowell is pleased to appoint Gary Edwards to the newly created executive board role of Chief Information Officer. Gary is an experienced IT executive with significant expertise in the finance sector in the UK and overseas.  He joins Lowell from Thomas Cook PLC where he was Group CIO. Prior to this Gary held senior positions across a range of major PLC organisations, including Barclaycard where he drove forward major IT strategy and transformation programmes.

Welcoming these appointments to the executive board, James Cornell, CEO, said:

I am delighted to welcome Colin and Gary to Lowell and look forward to working with them both.  We have tremendous growth ambitions for Lowell and the appointment of two such experienced and talented people will certainly add further impetus to the delivery of our plans.

Lowell has also created a new senior management role of Director of New Ventures to further strengthen its partnership approach to relationships and to develop innovative capital deployment solutions. The new role will be filled by Oliver Betts, who will join Lowell on 12 November from TDX where he was responsible for their debt sale business and has a track record of building long term strategic partnerships with clients.

James Cornell added:

Olly’s experience will further strengthen our capabilities in this key area of our operation.  We look forward to his contribution as we continue to diversify into larger opportunities in both current and new sectors of the market.