Debt collector Cabot cancels IPO plans
Debt collector Cabot Credit Management has shelved plans for a flotation on the London Stock Exchange.
The possibility of a flotation had first been hinted at in February, and an official confirmation subsequently came on October 20.
However, the board of directors backtracked on Friday, explaining that that “given the current IPO and broader market conditions”, it would not be “in the best interest of the company or its shareholders” to proceed with the offering.
Ken Stannard, chief executive officer, said: “The high level of engagement and interest that we received from a wide array of investors was very encouraging, but the timing has been unfortunate with respect to IPO market conditions.”
Cabot Credit Management provides debt collection, purchasing and litigation services. In the UK, companies in the group include Cabot Financial, Apex Credit Management, Mortimer Clarke Solicitors, dlc and Orbit. Cabot’s operations also span France, Spain and Ireland.
In November, Cabot also acquired debt managers Wescot.
The group has enjoyed consistent growth on gross earnings for the last four quarters. Earnings before tax and deductions for the nine months to September were £214.3m, up 19% year on year.
