Cabot Credit Management (CCM) has recorded a 24 percent year-on-year rise in its adjusted EBITDA for the third quarter of this year.
Its results update shows the company’s adjusted EBITDA increased to £180m in the third quarter, from £146m during the same period last year.
Ken Stannard, chief executive of Cabot, said the increase was driven by a 20 percent growth in the company’s debt purchase collections and a 34 percent growth in its servicing revenue.
Collections rose to £266m from £223m in the third quarter last year; while pre-tax profit also increased year-on-year from £30.7m to £36.3m.
After the recent news that European credit management group Intrum Justitia is to acquire UK debt purchaser 1st Credit, a question was brought during an investor call regarding mergers.
Cabot was queried if it had any plans to merge with similar companies but its chief financial officer Craig Buick and Stannard said the company “doesn’t see anything happening in the immediate term”.
They did, however, discuss how the company is hoping to duplicate the leadership position it has in the UK across its French and Spanish platforms, by taking a lead in the conduct and compliance space.
In Cabot’s results, another rise was recorded in the total value of loan portfolios purchased.
This figure increased to nearly £945m during the first three quarters of this year, from about £880m during the same period in 2015.
Stannard added: “We increased our super senior revolving credit facility from £200m to £250m. In addition, maturity has been extended by one year to 2019 and margin decreased to 3.25 percent.
“This new facility enables us to continue to develop our business and to invest in our existing assets.”