Intrum Justitia Losses Increase

In the first three months of 2009 (January through March), debt collection company, Intrum Justitia, has seen significant and unacceptable losses within its UK credit management services division. The company’s UK and Ireland division employs 230 people and is headquartered in Liverpool.  The quarterly losses of Intrum Justitia increased by 60% and amounted to £880,000, while its revenues fell by 8% and reached only £4.6 million. Lars Wollung, the president and chief executive of the Intrum Justitia company said that the purchase of debt operations is profitable as long as the Credit Management Services (CMS) segment is losing money. However, he claimed that the company cannot afford suffering those losses and will find and implement a solution in 2009. In an effort to eliminate losses in the sector of Credit Management Services (CMS), the company plans to focus on unprofitable clients’ contracts. Despite the fact that earlier this month the UK division of Intrum Justitia claimed that it wanted to expand its business across the United Kingdom by creating 100 more job sites, its plans were reversed. At the moment, Intrum Justitia UK says it has no intentions to expand. The news was announced just after its UK managing director, Chris Savage, resigned. Chris Savage blamed the company for diverged views on the managing strategy in the UK and Ireland. Despite its problems on the UK market, Intrum Justitia operates on 22 European markets and has increased its quarterly profits by 10% and its revenues by 17%, which now amount to £14.8 million and £84.4 million accordingly.