12th Nov 2019 09:44
(Alliance News) - Arrow Global Group PLC on Tuesday expressed confidence for the reminder of the year after reporting profit growth in the first nine months of its current financial year.
The asset manager reported pretax profit of GBP42.2 million for the nine months to the end of September, up by two thirds from the GBP25.6 million it reported a year ago.
Underlying pretax profit decreased, however, by 5.4% to GBP50.4 million, due to a 15% increase in finance costs relating to deferred consideration costs and application of new accounting standard related to leases IFRS 16.
Free cashflow grew by 15% to GBP174.4 million in the first nine months of 2019.
"Returns in the investment business remain attractive and collections and cash generation both increased strongly during what is traditionally a quieter quarter," said Chief Executive Officer Lee Rochford.
Looking ahead, the Manchester-headquartered firm said it is trading is in line with market expectations for the full year.
"The group's highly cash generative characteristics mean we continue to have the flexibility to allocate capital between investment for growth, dividends and deleveraging. We therefore remain confident that we can continue to grow the business, reward shareholders and finish the year within our new targeted lower leverage range of 3.0x-3.5x," added Rochford.
Arrow Global shares were trading 5.5% lower in London on Tuesday at 218.30 pence each.
By Evelina Grecenko; [email protected]
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