Lowell - Cash EBITDA...

All,

Lowell have posted good collections this morning. Much of it was driven by lower GMMs, but income from collections was nonetheless up some 5%.

The gains in income from collections were however more than eroded by increased operating costs of £8m.

Away form that however, the story is much as expected. Lowell cut portfolio purchases, which raises its bogus "Cash EBITDA” figure and improves all the metrics the company attaches to it.

We hate it and remain concerned about the company’s ability to generate cashflow. But judging from the market’s reaction to Intrum’s last results (same story), there should be enough equity heads out there to push the bonds higher.

Wolfgang