Target Group has posted a more than doubling of its profits for the 2014 financial year.
The financial services outsourcing and software provider posted EBITDA of £5.5m in 2014 – a £3.3m increase on the 2013 figure of £2.2m. Turnover increased by over £11m over the same period from £34.7m to £46.1m.
Target increased the total amount of assets it manages on behalf of financial services firms from £17bn in 2013 to £22bn in 2014 with £5.5bn under third party administration and £16.5bn of financial services assets running on its managed software platforms.
During the year Target processed over £5.5bn of Direct Debits and collected over £400 million of arrears on behalf of clients.
Paddy Byrne, CEO at Target Group, said: “Our results are a reflection of Target’s commitment to delivering excellent service on behalf of our clients in every interaction. We have had a very successful year which included migrating several portfolios across a range of asset classes in seamless well managed processes and collecting cash in excess of clients’ expectations, all in a compliant and customer centric manner. These results demonstrate our market leading capabilities and the fact that our clients can rely on exceptional regulatory and economic performance in the portfolios we administer.
“We have also had several new clients place their business with Target which, combined with growth in the portfolios of our existing clients, has led to a 29% increase in assets on Target’s systems with a resultant increase of 33% in turnover and 150% in profit.
“In addition to our successes in primary and special servicing, our software development teams have implemented a state of the art accounting system for a leading retail finance provider and have delivered a hosted payments solution for the DVLA which will enable the processing of over 10 million Direct Debits in support of the phase out of the road tax disc. In the insurance market, we continue to roll out our innovative Insurance software, ‘IF Channel’, to support clients with their multi-channel digital distribution strategies.
Target is also entering the UK structured product industry as a product provider. This move will see us designing retail structured products and distributing via intermediaries under our brand ‘Hartmoor Financial’ and strongly positions Target as both a product manufacturer and a provider of third party administration.”