Cabot Financial set for £1bn float

Cabot Financial set for £1bn float

The UK’s largest debt collector has announced its intention to float on the London Stock Exchange.

Kent-headquartered Cabot Credit Management hopes to raise a total of £195m from the £1bn initial public offering (IPO) in November.

The company had been set to float earlier this year however the plans stalled following the resignation of former chief Peter Crook.

Ken Stannard, chief executive officer of Cabot Credit Management, said: "This is a very exciting episode in Cabot's continued growth and development.

“Having built strong and entrusted Credit Management Service businesses in the UK and Ireland we are now well into the construction of leading platforms in three new markets.

“As one of the largest players in Europe it now feels right to be listing on the London Stock Exchange.

“We are faced with significant untapped growth potential in each jurisdiction as creditor clients continue to partner with us to improve their own performance.

“We have a clear strategy of generating sustainable competitive advantage on the foundation of superior collections effectiveness and outstanding customer treatment.

“The executive team, with the support of our board, will continue to work hard to execute this strategy and maintain attractive returns for our shareholders."

Andy Haste, chairman elect of Cabot, added: "At a time when there is an increased focus on consumer credit, Cabot continues to lead the industry as it works to identify affordable solutions, which help customers with their financial recovery.

“I have been impressed by the work that Ken and his team have done in building the business in a responsible and transparent way, focused on delivering fair outcomes and a positive experience for its customers. I look forward to supporting the team in that work at what is an important moment in Cabot's development."

Cabot's primary business relates to the purchase of unsecured consumer debt from financial services institutions, although 37% of its collections for the year ended 31 December 2016 were on behalf of third party clients.

Over its 20 year history, Cabot has invested a total of £2.1bn in acquiring over £21bn in face value of loan portfolios and had collected a cumulative £2.9bn from these portfolios as at 30 June 2017.