Glossary
  • Q: Adjusted EBITDA

    A:

    Represents core collections, which include income from purchased loan portfolios, adding back portfolio amortisation, and excluding the effects of income from asset management, other income, operating expenses, depreciation and amortisation, foreign exchange (gains)/losses, amortisation of acquisition and bank facility fees and exceptional costs

  • Q: Gross Cash-on-Cash Multiple or Gross Money Multiple

    A:

    Collections to date plus the 84-Month ERC or 120-Month ERC, as applicable, all divided by the purchase price for each portfolio

  • Q: Core Cash Collections

    A:

    Collections on the Group’s existing portfolios

  • Q: Collection Activity Costs

    A:

    Direct costs of external collections related to the Group’s purchased loan portfolios such as commissions paid to third party outsourced providers, credit bureau data costs and legal costs associated with collections

  • Q: Cost-to-Collect / Collection Cost Ratio

    A:

    Ratio of collection activity costs to core collections

  • Q: Collections to Date

    A:

    Core collections to date plus putbacks (portions of portfolios re-assigned to the Debt Seller) plus disposal proceeds on portfolio account sales

  • Q: EIR

    A:

    A loan portfolio’s gross internal rate of return based on the loan portfolio purchase price and forecast 84-Month ERC at the date of purchase. EIR is reassessed and adjusted 12 months after the purchase of each loan portfolio

  • Q: Gross IRR

    A:

    A loan portfolio’s gross internal rate of return based on the loan portfolio purchase price and forecast 84-Month ERC or 120-Month ERC, as applicable, at the date of purchase

  • Q: Gross 84-Month ERC (120-Month ERC)

    A:

    Estimated remaining collections on purchased loan portfolios over an 84-month (120-Month) period representing the expected future core collections on purchased loan portfolios over an 84-month (or 120-Month), calculated at the end of each month, based on the Group’s proprietary ERC forecasting model, as amended from time to time

  • Q: Existing Portfolios

    A:

    All debt portfolios that the Group owns at the relevant point in time, shown on its balance sheet as purchased loan portfolios

  • Q: Free cash flow pre Financing, Taxes and Portfolio Purchases

    A:

    Adjusted EBITDA excluding the effect of capital expenditure and changes in operating working capital

  • Q: Net Cash-on-Cash Multiple or Net Money Multiple

    A:

    Collections to date plus the 84-Month ERC or 120-Month ERC, as applicable, net of collection activity costs, all divided by the purchase price for each portfolio

  • Q: Net Cash Collections

    A:

    Core cash collections less collection activity costs

  • Q: Net Debt

    A:

    Debt owed to third parties and cash and cash equivalents, but not including Shareholder Loan Notes or unamortised bank arrangement fees

  • Q: Underlying Net Income

    A:

    Profit for the period attributable to equity shareholders adjusted for the post-tax effect of exceptionals

  • Q: 84 or 120-Month Net IRR

    A:

    Calculated using expected net cash collections for the next 84 or 120 months, as applicable, subsequent to the date of purchase of the loan portfolio adjusted regularly in line with ERC