Member Article

Manchester-based Arrow Global Group reports pre-tax profits of £6.5m

Arrow Global Group PLC, a European purchaser and manager of debt portfolios with headquarters in Manchester, has announced its results for the three months ended 31 March 2015.

The stats

The group has reported its pre-tax profit is £6.5m an increase of £3m compared to the same period last year.

For the three months ended 31 March 2015, it acquired debt portfolios with a face value of £583.9m for a purchase price of £52.1m (up 57.2% compared to Q1 2014).

The analysis

These acquisitions have increased the balance sheet value of the group’s purchased loan portfolios to £508.2m at 31 March 2015 (31 December 2014: £477.5m).

The company reports that it remains on track to deliver overall full-year results in line with its expectations.

It has £79.9 million of future investment already contracted, with £28.8 million of this coming in the remainder of 2015.

The comment

Chief executive officer of Arrow Global, Tom Drury, said: “Q1 was another strong period for Arrow Global, with growth across all our key financial metrics. Portfolio purchases were up 57.2% compared to the same quarter last year at £52.1m, we remained highly cash generative with core collections increasing by over 50% to £51.m and we achieved a 41% increase in Adjusted EBITDA to £32.8m.

“We also made significant operational progress, reinforcing our market leadership in Portugal, with the formalisation of a strategic partnership with CarVal Investors and the acquisition of Whitestar and Gesphone. In the UK, we continued to rationalise our servicer panel to ensure greater oversight against a backdrop of enhanced regulation, and also to drive synergies from the acquisition of Capquest in Q4 2014.

“Preparations for our FCA landing slot in Q3 this year remain a key focus. Aligned to this, we continue to develop and embed our customer-centric culture both internally and across our core servicer panel.

“We are on track to deliver overall full-year results in line with our expectations, with growth supported by good visibility in our origination pipeline. We have £79.9m of future investment already contracted, with £28.8m of this coming in the remainder of 2015.”

The summary

A strong start to the year for the company, with £6.5m pre-tax profit so far and a good pipeline of work for the rest of the year.

This was posted in Bdaily's Members' News section by Sophia Taha .