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LONDON - A recent roundtable in the UK Parliament, hosted by The Viscount Chandos and chaired by Credit Services Association CEO Chris Leslie, brought together financial industry stakeholders to discuss supporting UK households in debt. The event, organized by PRA Group, Inc. (NASDAQ:PRAA), a $935.6 million market cap debt collection firm with impressive 39% revenue growth over the last twelve months, and StepChange Debt Charity, took place on Monday to address financial inclusion and consumer resilience.
Participants, including representatives from banks, credit agencies, nonprofits, regulators, and government, examined the Financial Conduct Authority’s (FCA) findings on the UK’s credit reporting system. The FCA study suggested that the current framework might not consistently serve consumer interests, echoing StepChange’s research indicating that concerns over credit scores often delay individuals from seeking financial assistance. According to InvestingPro data, PRA Group maintains strong financial health with a current ratio of 12.8, indicating robust liquidity to support its operations.
Martin Sjölund, president of PRA Group Europe, emphasized the importance of aiding customers worried about their credit scores, while StepChange’s head of policy, Peter Tutton, highlighted that fear of credit score impact causes a significant number of their clients to postpone seeking debt advice.
The roundtable aimed to promote practical solutions for credit reporting that would enable financially recovering individuals to regain access to affordable credit, fostering greater financial inclusion. These discussions were based on the FCA’s Credit Information Market Study recommendations, which seek to improve outcomes for borrowers facing financial difficulties.
PRA Group, a global entity focused on acquiring and collecting nonperforming loans, works alongside creditors to return capital and expand consumer financial services in various regions. StepChange, the UK’s leading debt advice charity, offers support for those dealing with debt issues and advocates for systemic changes to mitigate the negative effects of debt.
The information for this article is based on a press release statement.
In other recent news, PRA Group has reported positive quarterly earnings alongside an increase in purchasing volume, which has led JMP analysts to maintain a Market Outperform rating and a $35 price target for the company. The analysts have expressed confidence in PRA Group’s refined 2025 guidance metrics, which have been updated to enhance their outlook on purchasing and earnings. The company has achieved near-record purchasing volumes in Europe and favorable supply and pricing dynamics in the U.S., contributing to its consistent performance. Additionally, PRA Group has made significant strides in legal collections and offshoring efforts, along with improvements in its funding profile, featuring increased capacity and extended maturities.
In another development, PRA Group announced plans to offer an additional $100 million in senior notes due in 2030. This offering, contingent on market conditions, will be exempt from the registration requirements of the Securities Act of 1933. The proceeds from this offering are intended to repay approximately $100 million of the company’s outstanding borrowings under its North American revolving credit facility. The notes will be guaranteed by PRA Group’s domestic subsidiaries involved in the North American Credit Agreement. These recent developments reflect PRA Group’s ongoing strategic efforts to enhance its financial and operational standing.
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