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.
- 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.”