11th May 2016 07:57
LONDON (Alliance News) - Arrow Global Group PLC, the London-listed purchaser and manager of debt portfolios, on Wednesday reported higher first-quarter revenue and earnings, driven by a jump in core collections on purchased loan portfolios and asset management.
Arrow, which bolstered its European market position in the quarter with the acquisition of InVesting, a Netherlands and Belgium consumer debt purchaser and collector, said profit attributable to shareholders amounted to GBP7.6 million in the three months ended March 31, up from GBP5.2 million the corresponding period a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation rose 58% to GBP51.7 million.
Revenue rose by 25% to GBP44.5 million, thanks to a 31% jump in core collections. Asset management revenue amounted to GBP7.2 million, contributing 16% of total revenue versus 3.4% a year earlier. Chief Executive Officer Tom Drury said the company expects its capital-light asset management operations to account for around 25% of its revenue on a pro forma full-year basis.
He said Arrow remains "confident" in delivering on its target of investing at roughly twice its annual replacement rate, while maintaining strong portfolio returns.
"This, coupled with our continuous investment in growing 'capital light' asset management revenues, provide us with the confidence that we are on track to deliver overall full-year earnings in line with our expectations," Drury said in a statement.
Shares in Arrow were up 0.5% at 266.25 pence Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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