Lowell Group, a UK leader in consumer debt purchase and recovery, today announces interim financial results for the third quarter of its 2014 financial year (1 April 2014 to 30 June 2014).

The Group has maintained its strong performance throughout the financial year to date with continued sustainable and predictable growth in collections, ERC, EBITDA and portfolio acquisitions. Following the recent investment from Teachers’ Private Capital, the Group remains well funded and well positioned in a buoyant marketplace to continue achieving growth and high returns. 

Highlights

  • Diversified acquisitions spend of £36m – £120m year to date, up 15 per cent on same period last year
  • £51m collections in Q3, £184m in last 12 months – up 17 per cent on previous 12 months
  • June 2014 84 month ERC at £654m, up 28 per cent on June 2013
  • Almost half of ERC (£320m) to be collected within 24 months
  • Q3 adjusted EBITDA £33m, up 25 per cent on Q3 2013

Commenting on the results, Colin Storrar, CFO said:

“Q3 was a quarter of strong growth and predictable earnings. All of our key financial metrics have continued to show double digit growth.

“Our ERC, the amount we expect to collect over the next 84 months, has increased to £654 million, a 28 per cent increase on the figure a year ago. Of this total, we expect to collect £320 million, almost half, in the next 24 months.

“Collections of £51 million in Q3 were up 30 per cent on the same period last year, while collections over the last 12 months now total £184 million, a 17 per cent year on year increase.

“EBITDA for the quarter was £33 million, 25 per cent up on the same period last year.  The trend for the year to date is equally strong showing 14 per cent growth in EBITDA from £107 million to £122 million.

“In August we announced that the Ontario Teachers’ Pension Plan (Teachers’), through its Teachers’ Private Capital division, has agreed to acquire a significant minority interest in the company, recognising Lowell’s potential for further growth. The involvement of Teachers’ and the continuing support of TDR Capital means that we now have an even greater opportunity to maximise the potential of our business. In summary, we are well positioned in a buoyant and consolidating marketplace.”

Lowell Group, a leader in consumer debt purchase and recovery, announces that the Ontario Teachers’ Pension Plan (Teachers’), through its Teachers’ Private Capital division, has agreed to acquire a significant minority interest in the company.  Each of the current investors in Lowell will remain shareholders, each selling a proportionate amount of their current holding. Completion of the transaction is subject to customary regulatory clearances and other approvals and consents.

Over the past decade Lowell has established a successful track record of growth. With 14.4 million individual accounts at a face value of £12 billion Lowell is today a recognised leader in a growing market.

Welcoming the Teachers’ investment, James Cornell, CEO of Lowell Group, said:

I am delighted that Teachers’ has recognised the potential in Lowell and agreed to invest significantly in the future of our business.  With the involvement of Teachers’ and the continuing support of TDR Capital we now have an even greater opportunity to build on our success and maximise the potential of the Lowell business.

About Lowell

Lowell Group is a leader in consumer debt purchase and recovery based in the United Kingdom. It is a specialist in buying non-performing consumer debt from a wide range of major creditors, across various industries, including financial services, communications, home retail credit and utilities.  Lowell has acquired in excess of 14.4 million accounts, which represents a significant proportion of the UK’s credit active population and enables it to have a significant understanding of new portfolios.  The company works with its customers, offering realistic, affordable and sustainable payment plans tailored to their individual circumstances.

About Ontario Teachers’ Pension Plan

The Ontario Teachers’ Pension Plan is the largest single-profession pension plan in Canada, with $140.8 billion in net assets as of December 31, 2013. An independent organization, it invests the pension fund’s assets and administers the defined benefit pensions of 307,000 active and retired teachers in Ontario.  Teachers’ Private Capital is the plan’s private equity investing arm. Over the last 20 years, Teachers’ has invested in excess of CAN$20 billion in private equity. Teachers’ has been active in Europe since 1992 and has a European investment portfolio of approximate CAN$5 billion. For more information visit www.otpp.com. Follow us on Twitter @OtppInfo.

About TDR Capital

TDR Capital is a private equity firm with over €4.8 billion of commitments under management. Based in London, TDR Capital focuses on mid-market buyout investments headquartered in or with significant operations in Europe.

Forward-Looking Statements

This press release may include forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes, ‟estimates”, ‟anticipates”, “expects, ‟intends”, ‟may”, ‟will” or “should” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding Lowell Group or its affiliates’ intentions, beliefs or current expectations concerning, among other things, Lowell Group or its affiliates’ results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Lowell Group or its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if Lowell Group or its affiliates’ results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.