Lowell Group have reported an increase of nearly a quarter in their estimated remaining collections (ERCs), with over half a billion pounds outstanding in their Q4 2013 interim results.
The financial update covers the period to the end of August 2013, and puts ERCs at £531.5 million, up by 24% compared with the same point 12 months ago.
Chief financial officer Colin Storrar says a record quarter of portfolio acquisition has helped to underpin the firm’s strong balance sheet position.
He adds: “Strong operational performance, low cost collections expertise and growing economies of scale continue to support the strong cash generation of our assets, which is highlighted by the ‘cash asset return’.
“Lowell’s cash asset return is at an industry-leading level of 23.6%.”
The current financial update comes at a curious time for Lowell Group, which is shifting its official year-end to September, so that its reporting quarters align with the recognised four quarters of the calendar.
As a result of this, ‘year end’ results will be published for the 13-month period ending September 2013; these are due for publication by January 28th 2014.
Other highlights from the past quarter include Lowell Group’s revolving credit facility remaining undrawn by August 31st, while £45.5 million of capital was deployed on new portfolio acquisitions.
Forward-flow arrangements have already committed Lowell Group to a further £70 million of portfolio purchases for the full year of 2014.
Contrasted against this, total collections during the quarter were up by 9% year on year, at £40.4 million.