News

Lowell Group plans to publish its interim financial results for the second quarter 2014 (1 Jan -31 Mar 14) on the investment section of the Lowell Group website on the morning of Thursday 22nd May 2014. Access is by request via the following link:

http://www.lowellgroup.co.uk/index.php/investors

 

TELECONFERENCE – In addition, at 13.00hrs BST on Thursday 22nd May, Lowell Group’s CEO, James Cornell, and CFO, Colin Storrar, plan to hold an audio conference presentation on the company’s performance.

To access this audio conference, participants will need to register in advance at:

 

http://emea.directeventreg.com/registration/32547682

 

They will then be allocated the conference call number, a participant user pin, conference pin and instructions on how to join the conference call.

Lowell Group today announces that it has successfully priced an offering of £115 million in aggregate principal amount of 5.875% senior secured notes due 2019 (the “Notes”). The Notes will be issued at a price of 100% of principal amount. The Issuer will pay interest on the Notes semi-annually in arrears on each April 1 and October 1, commencing on October 1, 2014.  The proceeds of the issue will be used to repay all outstanding drawings under the senior facilities, to pay certain fees and expenses relating to the offering and for general corporate purposes, to support the continued growth of the business.

The Notes will be offered only to qualified institutional buyers pursuant to Rule 144A and outside the United States pursuant to Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), subject to prevailing market and other conditions. There is no assurance that the offering will be completed or, if completed, as to the terms on which it is completed. The Notes to be offered have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or unless pursuant to an applicable exemption from the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area (the “Prospectus Directive”). The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Directive, as implemented in Member States of the European Economic Area, from the requirement to produce a prospectus for offers of securities.

In connection with the issuance of the Notes, one of the initial purchasers will serve as stabilizing manager and may over-allot the Notes or effect transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail. However, there is no assurance that the stabilizing manager (or persons acting on behalf of the stabilizing manager) will undertake stabilization actions. Any stabilization action may begin on or after the date on which adequate public disclosure of the terms of the offer of the Notes is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the Notes and 60 days after the date of the allotment of the Notes. Any stabilization action or over-allotment must be conducted in accordance with all applicable laws and rules.

 

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.

 

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.

 

Lowell Group today announces that it intends to launch an offering of £100 million in aggregate principal amount of senior secured notes (the “Notes”). The proceeds from the offering will be used to repay all outstanding drawings under the senior facilities, to pay certain fees and expenses relating to the offering and for general corporate purposes, to support the continued growth of the business.

The Notes will be offered only to qualified institutional buyers pursuant to Rule 144A and outside the United States pursuant to Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), subject to prevailing market and other conditions. There is no assurance that the offering will be completed or, if completed, as to the terms on which it is completed. The Notes to be offered have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or unless pursuant to an applicable exemption from the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area (the “Prospectus Directive”). The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Directive, as implemented in Member States of the European Economic Area, from the requirement to produce a prospectus for offers of securities.

In connection with the issuance of the Notes, one of the initial purchasers will serve as stabilizing manager and may over-allot the Notes or effect transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail. However, there is no assurance that the stabilizing manager (or persons acting on behalf of the stabilizing manager) will undertake stabilization actions. Any stabilization action may begin on or after the date on which adequate public disclosure of the terms of the offer of the Notes is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the Notes and 60 days after the date of the allotment of the Notes. Any stabilization action or over-allotment must be conducted in accordance with all applicable laws and rules.

 

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.

 

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.

Lowell Group, a UK leader in consumer debt purchase and recovery, today announces interim financial results for the first quarter of its 2014 financial year (1 October 2013 to 31 December 2013).

The Group continues to report strong performance with continued collections growth, high liquidity and returns, record committed portfolio purchases and a very encouraging pipeline of opportunities for the remainder of the year.

Highlights

  • Estimated remaining collections (ERC) of £549 million, up 17% since 31 December, 2012
  • Collections of £43 million in the quarter, up 19% compared with Q4 2013
  • Adjusted EBITDA of £29 million in the quarter, up 16% compared with Q4 2013
  • Unlevered Net IRR on portfolios owned strong at 34.5% (before direct costs of collections)
  • 50% of ERC (£274 million) expected to be recovered as cash within 24 months
  • Cash asset return of 23.2% for 12 months to December 2013
  • £79 million portfolio purchases for FY14 already committed, including £60 million from forward flow arrangements with 11 key clients
  • New business trials underway with commercial and public sector clients
  • FCA preparations ahead of schedule – interim permissions applied for and granted
  • Industrialisation of IT infrastructure complete with a secure and stable cloud based solution in place

Commenting on the results, Colin Storrar, CFO, said:

“The Group continues to deliver consistently strong results based on solid fundamentals of a proven business model and effective management. Compared to the same quarter last year, our collections were up 19 per cent to £43 million, EBITDA was up 16 per cent to £29 million, and our estimated remaining collections (ERC) were up 17 per cent to £549 million, of which we expect to collect around 50 per cent – £274 million – within 24 months, offering significant cash flow visibility.

“The prospects for the rest of the year are very encouraging. Already in the first quarter of this year we have made, or are committed to, £79 million of portfolio purchases, which represents 64 per cent of our total spend last year. This figure includes £60 million from forward flow agreements with 11 different clients, which reflects the strategic depth of our client relationships. It is the largest committed portfolio purchase level ever achieved at this point in a financial year, indicative of the strength of our client relationships and wider market conditions. Our capital is being deployed in areas we know well and where we believe we can achieve high returns. 90% of these purchases were made with repeat clients and all are in our core sectors.

“Looking to the future, a strong pipeline of opportunities bodes well for the rest of the year. Strong growth is forecast in consumer credit lending across credit cards, car finance and unsecured loans. Focusing on our core markets, financial services, home retail credit and communications, and there are opportunities across the board. We believe there is a £27bn backlog of debt in financial services and anticipate that the capital de-leveraging requirements will force European institutions to sell debt. Continued growth is forecast in home retail credit and we are seeing a shift upstream for debt sales in communications as companies look to release cash for marketing. This fresher debt will give rise to increased spend opportunities.

“Also, the synergies of our acquisition of contingent collections specialist Interlaken are already reaping rewards in terms of opening up new market sector opportunities, including higher balance financial services and government debt. New business trials are underway with a number of commercial and public sector clients.

“Alongside continued strong performance and predictable growth we have maintained a strong investment in our future operational platforms and strategic direction, a highlight of which is the successful industrialised our IT infrastructure establishing a secure and stable virtual platform for growth.

“Finally, away from the figures, our preparations for FCA regulation are ahead of schedule and have progressed well. We applied for and were granted interim permissions in November 2013, while our internal cultural programme FAIR, which forms part of our preparation for FCA regulation, continues to receive positive feedback from customers and clients alike. A primary focus has been strengthening our affordability assessments during our customer calls, something which has contributed to our continued low default rate for what were previously non-performing accounts.” 

A copy of the results presentation is available via www.lowellgroup.co.uk/investor

Lowell Group plans to publish its interim financial results for the first quarter 2014 (1 Oct 1–31 Dec 13) on the investment section of the Lowell Group website on the morning of Friday 28th February 2014. Access is by request via the following link:  http://www.lowellgroup.co.uk/index.php/investors

TELECONFERENCE – In addition, at 11.00hrs GMT on Friday 28th February, Lowell Group’s CEO, James Cornell, and CFO, Colin Storrar, plan to hold an audio conference presentation on the company’s performance.

To access this audio conference, participants will need to register in advance at:  http://emea.directeventreg.com/registration/2806359

They will then be allocated the conference call number, a participant user pin, conference pin and instructions on how to join the conference call.