Debt purchaser Lowell Group made £31.2m of portfolio investments in the second quarter of 2015, according to a results statement.
The results reveal that Lowell has already achieved or committed £119m in purchases for the full year 2015. Collections during the second quarter increased 14 per cent year on year to £55.9m.
The financials also show a 10 per cent annual increase in EDITDA to £34.8m for the three months to March.
Colin Storrar, chief financial officer, said: “At the same time our balance sheet continues to grow – our 84 month estimated remaining collections (ERC) now stands at £742.4m, an increase of 19 per cent or £117m from March 2014.
“In addition, we continue to see value beyond our 84-month accounting period, with our 120-month ERC increasing by 18 per cent (£128m) to £829m.
“This cash flow visibility means we are well placed to invest in further purchases to satisfy our investment appetite, while the number and volume of our forward flow agreements and the fact we purchase across financial services, home retail credit and telecommunications clearly helps us achieve our purchasing goals.”
In an investors briefing, Storrar explained that Lowell has forward flow deals locked down with the six major mobile companies in the UK.
He added that the company’s diverse range of investments has shielded it from more modest levels of financial services book deals during the first half of 2015.
His statement in the results update continued: “Our business also continues to focus upon maintaining discipline in pricing new investments, harnessing the significant data asset and analytic capabilities that the business benefits from.”
As at March 31 2015, the aggregate face value of debt purchased since Lowell’s inception totalled £13.7bn, a 14 per cent increase from the same period in 2014.
Some 48 per cent of its ERC (£353.4m) is expected to be recovered as cash within 24 months.
In the immediate future, Lowell’s application to the FCA for a full licence continues to gather pace, with formal submission on track by the end of August.
Storrar added: “Customer centricity will be central to our application, something recognised by Investors In Customers who recently awarded us with a three star assessment; the highest that is available.
“We continue to report strong financial performance, strong medium term growth prospects and the ongoing support and backing of two major investment houses in TDR Capital and Ontario Teachers’ Pension Plan.”
*Article Source credit today.co.uk