UK Debt Collector 1st Credit Holdings acquires Edward James International

1st Credit Holdings, the UK debt management firm, today acquired Edward James International (EJI) for an undisclosed sum. Based in Reigate, Surrey, 1st Credit combines traditional debt collection agency work with debt purchase. 1st Credit acquires consumer debt from lenders such as banks, credit card companies, utilities and retailers and subsequently collects the debt on its own behalf. It is estimated that more than £3.5 billion of consumer debt is referred to the collection industry every year for recovery, with debt purchase growing significantly. This compares with $30 billion in the US and reflects the potential for growth in the UK.

Since inception, 1st Credit has become the fastest growing debt collection agency in the UK. In its first full year of trading, the firm purchased more than £180 million worth of accounts and will achieve a turnover of £20 million and pre-tax profits of £2.5 million by the year-end. The acquisition of EJI will enhance 1st Credit?s client base, and significantly increase total accounts under management to just under one million, with a face value of £340 million. 1st Credit is also relocating to new premises in Reigate, which will facilitate up to 250 employees as from June 1, 2003.

Michael Cleary, Managing Director, said: ?The acquisition of EJI is the latest in a series of expansionary moves undertaken by the firm since we received initial backing from our investors some 15 months ago. We have delivered on our business model and are well ahead of our business plan. I firmly expect this latest move to underwrite 1st Credit?s reputation as one of the fastest-growing companies in Europe and establish us as one of the largest debt purchasers in the UK by the end of the year.?

1st Credit was initially funded through a £16 million package raised by Gresham Trust, the private equity house, and Barclays Bank and has further negotiated a £25 million senior debt facility to support ongoing development. Gresham Trust previously backed Michael Cleary at CCI Group plc, which was subsequently sold to Equifax.