5th Mar 2015 10:39
LONDON (Alliance News) - Arrow Global Group PLC Thursday delivered a higher profit for 2014, buoyed by strong revenue growth, while it declared a dividend in 2014 and gave a confident outlook for this year, highlighting a strong investment pipeline for 2015.
Arrow Global, which buys customer accounts from businesses including retail banks, credit card and telecommunications companies, reported a near 15% increase in its pretax profit to GBP24.1 million in 2014, up from GBP21.0 million in 2013, as total revenue rose 17% to GBP110.7 million, which it said was driven by a 14% increase in core collections, reflecting an increase in its portfolio asset base.
"Arrow Global had another transformational year in 2014, investing over GBP300 million whilst maintaining expected levels of returns. We acquired Capquest, a top-five firm within the market, following the successful issuance of EUR225 million senior secured notes. We also expanded our European footprint by entering two new geographies in France and Holland and significantly increased the value of our assets in Portugal," said Chief Executive Tom Drury in a statement.
The group proposed a final dividend of 3.4 pence per share, bringing the total dividend for the year to 5.1 pence, having paid no dividend in 2013. It also gave a confident outlook for the year ahead, stating that it has a strong pipeline of opportunities going into 2015 amid an expectation of continued growth in the debt purchase markets in both the UK and mainland Europe.
"Entering 2015, we have a strong investment pipeline and expect portfolio purchases for the year to be in line with expectations, underpinned by a higher level of committed purchases of GBP36 million for 2015, with a further GBP25 million already in place for 2016. These committed purchases are important as they allow us to lock in future portfolio acquisitions at our targeted return expectations," said Drury.
The group said the integration of Capquest is progressing well, and it remains on track to deliver GBP6.5 million of synergy benefits in 2016.
Drury said the group will continue to evolve its business model in order to meet new regulatory standards.
"We believe that increased regulation of the industry will benefit the leading market players and as such feel we are well placed to deliver continued strong growth," he said.
Arrow Global shares were up 0.6% at 246.50 pence mid-morning Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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