28th Nov 2013 15:18
LONDON (Alliance News) - Arrow Global Group PLC Thursday said it was confident of meeting full year expectations after it saw a strong performance in the third quarter, in its first results following its initial public offering in October.
In the quarter ended September 30, the debt collection company posted revenue of GBP21.8 million, increased from GBP16.1 million in the previous year, driven by rising income from purchased loan portfolios.
On Monday Arrow, in a consortium with CarVal Investors, bought a package of student loans, bringing its total student loans managed portfolio to more than GBP1 billion.
Arrow will be the master servicer for the entire portfolio. It invested GBP11 million in acquiring the loans and has a commitment to invest up to a further GBP22 million in assets arising from the transaction by January 2016.
Pretax profit was GBP6.5 million, up from GBP2.2 million in the previous year.
For the nine months ended September 30, Arrow posted a pretax profit of GBP17.7 million, up from GBP9.5 million and revenue of GBP70.1 million, up from GBP47.2 million in the previous year.
Arrow Global raised GBP42 million at its initial public offering October 8, which it said it intends to use for future portfolio acquisitions.
"We see a strong pipeline of portfolio acquisition opportunities ahead and, while the market remains competitive, our ability to access multiple source of origination will allow us to invest at or above our target returns," said Chief Executive Tom Drury in a statement.
Shares in Arrow were trading up 2.7% at 248.50 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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