Debt buyer Cabot Credit Management has shelved plans for a £1 billion float on the London Stock Exchange.

The Kings Hill-based company blamed market conditions for the decision to halt its plans to join the exchange, known as an initial public offering or IPO.

Chief executive Ken Stannard said: “The high level of engagement and interest that we received from a wide array of investors was very encouraging, but the timing has been unfortunate with respect to IPO market conditions.”

Bosses said they would reconsider a flotation if market conditions improve.

The IPO, which had been expected in November, would have raised £195 million and sold about 25% of the company, which buys overdue credit card debt and unsecured debts from lenders.

This would have given a partial exit for its major shareholders Encore Capital Group, the US debt-buying giant, and funds owned by JC Flowers, the private investment firm which rescued Kent Reliance.

However the board said in an announcement yesterday it felt an IPO “would not be in the best interest of the company or its shareholders”.

Stephen Hoad, chief executive of the Stop Hunter in Canterbury, said: "The rising failures of IPOs is making it more risky for companies.

"Brexit, trading conditions and the delicate place of the UK economy equates to future uncertainty and Cabot might want more internal control until they better know the future.

"Also hedge funds, one of the major sources of liquidity, are possibly less interested in the IPO market due to their own issues and the levels of risk IPOs present to them."

Cabot is one of the largest credit management firms in Europe and the market leader in the UK and Ireland.

It has invested £2.1 billion buying loan portfolios in its 20-year history, collecting £2.9 billion in repayments over that period.

Its adjusted earnings before interest, taxes and other charges were £247.8 million last year.