Lowell posts £78m cash EBITDA for Q1
Debt purchaser Lowell has posted a 32 percent year-on-year rise in cash EBITDA to £78m, for the first quarter of 2017.
While a trading update released this week (May 23) shows the group made a £2m pre-tax loss for the first three months of 2017, it also shows a 23 percent year-on-year increase in Lowell’s estimated remaining collections to £1.8bn. A total of 44 percent of its acquisitions during the past 12 months have come from forward flows.
The financials also show that Lowell has forecast more than £680m of gross cash collections in the next 24 months. In terms of sector split, 39 percent of Lowell’s purchases were in financial services in the year to March 2017, 37 percent in retail and 18 percent were in communications.
As portfolio prices remain highly competitive in the debt sale market, Lowell’s update states that the business is “maintaining a disciplined approach to pricing and investment.”
Colin Storrar, chief financial officer at Lowell, said: “This is a consistent performance from the now fully integrated group which demonstrates continued good operational strategy and execution.
“With our strategy focused on expansion and diversification, these results, combined with the strong foundations we have in place, enable us to view 2017 with confidence.”
Lowell’s update also shows the group posted an operating profit for the first quarter of £34.5m – a 72.5 percent rise year on year. The number of owned accounts at Lowell was 26.7 million as at March 31 – a rise of 14 percent on a year ago.