Can't Pay We'll Take It Away

29th Mar '18 by matylda

13 comments 2816 reads

Called my Mum the other day and she told her husband to turn the TV down. I asked what he was watching, because I remember him being the one who introduced me to Pawn Stars. Yes, I admit, I became a fan!

Don't laugh yet...

Anyway, this time was Can't Pay We'll Take It Away - So, now having had time to watch a couple of episodes luckily I have not become fan.

However!

Surely this is a going to be a big business.

Basics are, the guys on the program go after companies and individuals (who are in debt to others) based on escalating unpaid CCJs, for a fee.

So, who agrees? Who knows any listed companies involved in this arena?

Got to be worth a look I reckon.

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About the Author

Matylda

Premium Member

13 comments

Beginner

29th Mar '18

Maybe just employ this bloke:

http://www.bbc.co.uk/news/uk-england-manchester-42876790

daveinthelakes

29th Mar '18

Not aware of any listed companies that cover this specifically. However your thread reminded me to look at Begbies Traynor (LON:BEG) which has been on my watchlist following several mentions by Paul as a defensive stock if the economy turns negative. It was a little expensive as investors moved in probably for this reason but it has fallen back 15% and I have just purchased a full opening position.

Latest TU says on target for YE Apr18 for which they are now on a forward PE of 18, maybe a little high still but they will take off when administrations inevitably increase with rising interest rates.

matylda

29th Mar '18

Thanks, yes, was on my mind but I am just wary that if they don't get a load of business they seem to make a profit.

Will try and do some digging over the weekend for one of these CCJ enforcement type of companies although I suspect its very fragmented at present.

davids_h

29th Mar '18

Why would you want to own a piece of a business that makes money when people are in financial difficulties? It doesn't strike me as very hopeful or uplifting. Business is business, but a bit like big tobacco, it's not something I'd want to own.

matylda

29th Mar '18

Well, in my view this business is the opposite, mainly HELPING people in financial difficulties - That's my take on the general process.

Vsihv

29th Mar '18

Tend to agree with Matylda - debt collectors, horrible as it might be for the individual in debt, provide a service to companies that might otherwise go bust under a mountain of bad debt.
This would result in job losses, more bad debt and a vicious cycle.

Personally, I am a smoker (not proud) and British American Tobacco (LON:BATS) is my biggest individual holding.
The chief economist at a Bank I used to work at actually said (somewhat in gest I expect), that "demographics and ageing populations are by far the biggest economic challenge facing the developed world and in order to address, I would mandate smoking"

I also speak in gest - those who don't smoke - please don't start - it is horrible and hazardous to your health and wealth!!

Edinburgh Investor

30th Mar '18

I just came across this one Arrow Global (LON:ARW) looks like it may meet your criteria. Looks like an interesting little business too.

matylda

1st Apr '18

Thanks for that - Doesn't look bad at all to me.

Not quite the exact area I was looking at, nevertheless, an interesting enough area in itself, assuming they can continue finding enough debt to buy.

So far I can only really find ltd or one man bands in the area I am looking.

Cheers!

gus 1065

1st Apr '18

I recall Cabot Credit Management announced a London listing IPO last year (FT article refers) but I don’t think it has gone ahead yet. Not sure why.

https://www.ft.com/content/1a33e186-b588-11e7-aa26-bb002965bce8

The company is set up on Stocko but there’s no information posted at the moment. Rather than being a firm of “ambulance chasers”, their role is presumably to put their clients’ targets in one (sorry, sick humour).

Gus.

[Edit: Not sure link works and won’t let me paste the text. Article was on November 20, 2017 by Emma Dunkley. Google should find it if you’re interested.]

—————

Beginner

1st Apr '18

Being rather less sarcastic, I know from experience (buying a house from a near bankrupt) that most debt collection agencies do seem to be essentially small scale, family-run enterprises. But at the same time they cover very large ranges. I had a visitor from a company based 250 miles away! However they nearly all seem to use Experian (LON:EXPN) for data and information. It has a PER of 21, a PEG of 0.58, a yield of 2% covered x2, and preliminaries are due on 17 May. It is not really cheap,it carries a high level of debt, and there has been a large number of director sells over the last year. However it could be a bargain if we carry on on our current economic trajectory. (Do any of the sub-prime lenders appeal? Non-Standard Finance (LON:NSF) seems to be quite attractive at this level).

gus 1065

1st Apr '18

Did a bit more digging on Cabot. Looks like they are the largest specialist credit collection agency in the UK. The IPO was pre marketed as putting a £1bn+ valuation on the business but was pulled in November 2017 due to “lack of sufficient investor demand”. Plenty of information on the company website.

https://www.cabotcm.com/en/investors/results-and-presentations/

I suspect they will look to revisit the IPO as and when they’re confident of a better reception. Perhaps perversely, a downturn in the general UK economy would presumably make their offering more attractive to investors.

Gus.

matylda

2nd Apr '18

Thanks all for the input - This is the kind of company I am after (Ltd though) - https://www.hcegroup.co.uk/

Although it is interesting the debt "buyers" companies mentioned and the software related ones although I think Beginner has identified a couple of red flags there with Experian (LON:EXPN).

matylda

2nd Apr '18

These seem to be the biggest or one of the biggest https://marstonholdings.co.uk/... and doesn't seem to be exactly going places !

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Can't Pay We'll Take It Away

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Matylda

13 comments

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