Lowell Group profits from debt

DEBT purchasing specialist Lowell Group has seen annual turnover and profits increase thanks to a number of new client wins.

The Leeds-based group posted profit earnings before interest, tax, depreciation and amortisation of £20.6m for the year to August 31, up 53.7% from £13.4m the previous year. .

Collections turnover has increased 48.4% from £50.8m to £75.5m.

As a debt purchaser, Lowell Group buys portfolios of non-performing consumer debts from a range of major blue-chip organisations and then manages the recovery of those debts offering each consumer a repayment strategy appropriate to their circumstances.

Over the last 12 months Lowell has been successful in acquiring several new portfolios, including a number from new debt sale clients.

The number of consumer accounts managed by Lowell increased from two million to 3.7m over the period while the face value of these accounts rose from £2.3bn to £4bn.

In April, Lowell’s senior management teamed up with an independent investment company to acquire the business from original backers Cabot Square Capital for an undisclosed figure.

Chief executive James Cornell said: “Overall this has been a fantastic year, especially considering the distraction of the sale and acquisition process which took a large proportion of senior management’s time. It highlights the depth of quality in our management team.

“Our continued success is underpinned by ongoing investment in market-leading information systems, a highly automated and efficient operating platform, and, not least, a talented and committed workforce.

The human aspect is paramount. We work closely with all our debt sale clients, openly sharing information on pricing and collections performance. Also, throughout the collections process we are committed to treating account holders fairly and sympathetically.

“Next year there is going to be further investment in the operational platform, taking the business to another level again. This includes further automation; further ways to improve collection strategies through the intelligent use of data plus further investment into even tighter quality controls to ensure the customer is dealt with both efficiently and fairly.”