Lowell sees portfolio acquisitions double in Q1 2018

The firm made £73m in portfolio acquisitions between January 1 and March 31, 2018, compared with £36m the year before.

Cash income was £153m in Q1 2018, up four percent on Q1 2017 when it brought in £148m. Meanwhile, year-on-year cash EBITDA was flat at £78m over the three months.

On a pro forma basis, 120-month estimated remaining collections stands at £2.8bn, with the last 12 months’ cash EBITDA of £402m.

It added that it had reached an extension to its existing revolving credit facility, supported by an expanded group of 13 banks. The facility has been increased to €455m (£397m) on existing terms, which Lowell said increases funding flexibility and reduces the weighted average cost of debt.

Colin Storrar, Lowell chief financial officer, said: “The group’s net debt position remains largely unchanged despite significant portfolio purchasing. This is a positive reflection of our ability to generate free cash flow for further re-investment.

“The increase in commitments for the revolving credit facility to €455m demonstrates the underlying value and strength seen in Lowell, with the key terms of the facility remaining the same. The extended facility enhances the group’s ability and flexibility to grow the business, whilst reducing the average cost of debt, in-turn providing for greater cash-flow generation.”