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Debt purchaser’s profits drop by 69%
Wednesday 4th November 2009As the credit-stranglehold continues and employment stability remains shaky, another debt purchaser has announced a large fall in profits as customers find it harder and harder to repay mounting debts.
It has been reported by www.credittoday.co.uk that the UK division of debt purchaser Aktiv Kapital has seen operating profits for the third quarter of 2009 slide by 69% since the same quarter in 2008.
Whilst the business made an operating profit of £2.7 million this time last year, its interim financial statement says that this time around it has made just over £840,000.
Describing the collection environment in the UK and Spain as “difficult”, Aktiv Kapital also revealed that during the third quarter UK cash collection fell 24% since the third quarter of last year, falling from £17.9 million to £13.6 million.
Casting a gloomy outlook on the UK debt purchase market, the company said that according to independent sources, market prices have declined 50% from levels seen two years ago.
In a bid to weather these harsh conditions, Aktiv Kapital has confirmed that it will begin to concentrate on increasing long term payment plans rather than try and secure full settlements – which will come as something of a relief to its financially struggling customers being chased for huge amounts.
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