Project Cygnus

OPPORTUNITY SUMMARY

PROJECT CYGNUS

A LEADING PROVIDER OF DEBT COLLECTION SERVICES WITHIN A NICHE SUBSECTOR OF THE REAL ESTATE MARKET

OPPORTUNITY SUMMARY

FINANCIAL PERFORMANCE

8,000

3,500

7,000

3,000

6,000

2,500

5,000

2,000

4,000

1,500

3,000

Turnover £'000

1,000

2,000

Adjusted EBITDA £'000

500

1,000

0

0

YE18

YE19

YE20

YE21

YE22

YE23 F'cast

Turnover

Adjusted EBITDA

FINANCIAL HIGHLIGHTS

A Achieved turnover of circa £6.3 million in YE22 with an adjusted EBITDA in excess of £2.4 million. A Forecast to generate turnover in excess of £7.1 million in YE23, with an adjusted EBITDA of £2.6 million. A EBITDA margin has remained consistently strong in recent years, averaging 42% across the last five years. A Holds ongoing contracts with several corporate clients, one of which reliably provides a minimum of £760,000 of turnover per annum and will remain in place until at least 2025. A As of 30th June 2022, the company held net assets of £8.6 million, including cash of £5.5 million. A The company has dealt with 200,000 cases, collecting £200 million.

PROJECT CYGNUS

OVERVIEW

The company provides dedicated debt collection and complementary legal services for predominantly corporate clients in the real estate market, utilising innovative and streamlined internal processes to offer reliable, all-encompassing solutions. The company has established a prominent position within its sector as one of the only debt collection companies in the country focused on residential freehold properties, which has facilitated the continued growth of the business and the development of a strong, long standing client base. Our client is now offering the company for sale having built the business and put in place a second tier management team with full daily operational responsibility. Our client is willing to remain with the business to facilitate a smooth handover.

relationships with several key clients 25-year

success rate 100 %

KEY HIGHLIGHTS

A Undertakes a technology-driven and innovative approach to case management, combined with an in-house legal function, and enjoys a 100% success rate. A Secure online management tool, providing a full audit trail and allowing clients to track progress. A Operates nationally, currently working with 100 active clients, 98% of whom provide reliable, repeat business on an ongoing basis. A Benefits from strong, long-standing relationships with several major national corporate clients in the real estate market, a number of which span over 25 years. A The company has achieved Solicitors Regulation Authority (SRA) approval and is regulated by the Financial Conduct Authority (FCA). A Highly experienced management team in place, possessing the knowledge and skills required to effectively manage day-to-day business operations and drive the company’s current growth trajectory. A Operates from premises based in South England, with leasehold and freehold options available.

CONTACT

KBS Corporate KBS House, 5 Springfield Court Summerfield Road, Bolton BL3 2NT +44(0)1204 555 060

All enquiries should be made in the first instance to: Jay Singh

Corporate Finance Director jaysingh@kbscorporate.com +44(0)1204 555 060

info@kbscorporate.com www.kbscorporate.com

Disclaimer: This information, which does not purport to be comprehensive, has been provided by our client and has not been independently verified. No representation or warranty, express or implied, is or will be given by our client, its directors, employees or advisers or any other person as to the accuracy or completeness of this information and, so far as permitted by law.