Callcredit announces strong performance through a year of positive change
Callcredit had another extremely successful year in 2014, delivering strong results against a backdrop of more challenging conditions within the financial services market. Revenues increased by 19 per cent to £150 million from £126 million, with all divisions within the business reporting strong growth.
Overall revenue growth was driven by a number of significant new customer wins, underpinned by a continued focus on customer service and product innovation and by the efforts and support of colleagues across the Group. Callcredit generated profit before tax of £29.3m in 2014, up from £26.9m in 2013, representing an increase of 9 per cent year on year. The business generated healthy cash flows, converting profits into £16.6m of operating cash, and continues to operate well within its banking covenant.
Mike Gordon, CEO, Callcredit Information Group said: “It is a pleasure to be in the position to steward this business and to play a part in the next chapter of its growth strategy. We have an extremely energetic and dynamic culture driven by ‘can do’ innovative, smart and passionate people who have a real passion for the business. We have great solutions that are valued by our customers across all of our lines of business, which together have contributed to Callcredit becoming the trusted business it is today.
“Our aim is to double the size of our business in terms of revenue but we recognise that we can’t achieve this just through organic growth. Whilst our UK businesses’ growth prospects remain strong, we need to expand our business footprint. International markets offer the way to drive “hyper growth” in our Consumer, Software, Analytics, Fraud and International propositions. To facilitate this we are currently looking to identify the right opportunities to support our international growth plans.”
The future growth of the business is being strongly supported by GTCR, a leading Chicago-based private equity firm partner, who in February 2014 acquired the company from owners of five years, Vitruvian Partners. Under the ownership of GTCR, Mike Gordon was appointed as CEO in November 2014 and investments have been made in repositioning the organisation and expanding capabilities to enable the business to best serve its customers and capitalise on the significant opportunities in Callcredit’s markets.
Alongside continuing investments in data assets, products and customer service, chief amongst these initiatives are expanding go to market capabilities to drive sustainable top line growth and upgrading the operational infrastructure, to enable the business to scale more effectively in the future and improve operating profit margins.
Callcredit’s full Corporate Report 2014 is now available.