Lowell income up nine percent in Q1 2019

Cash earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12 percent to £444m, from £397m in the same quarter last year.

Portfolio acquisitions, though, fell eight percent to £404m, down from £441m in the first quarter of 2018.

Estimated remaining collections over 120 months stands at £3.1bn, up 11 percent on the £2.8bn in the same quarter in 2018.

Chief financial officer Colin Storrar, who is set to become chief executive after James Cornell announced he will be stepping down in June, said: “I am pleased with the start we have made to the year. These results are the natural progression of a maturing business capitalising on its scale and the strong momentum created last year.

“We have delivered growth across our key metrics. Cash EBITDA growth has continued to outperform cash income growth as we benefit from an increase in margin. Our 3PC business contributed 20 percent to cash income: providing an important capital-light source of revenue.

 “The balance sheet is central to our growth plans – we are committed to reducing leverage in our business, and are on track to deliver this.

 “We have a healthy pipeline of opportunities across our regions, at increasingly attractive returns.  We have made a positive start to 2019, having deployed £94m in the first quarter. The outlook for our business remains very strong.”