26th Jul 2018 11:53
LONDON (Alliance News) - Credit management services firm Arrow Global Group PLC on Thursday announced a GBP15.1 million acquisition as trading continues to meet management's expectations.
Arrow has bought Portugal-focused real estate manager Norfin Investimentos SA. The GBP15.1 million payment is upfront, and the cash will come from Arrow's existing resources.
Norfin has EUR1.5 billion of assets under management, Arrow said, and in 2017 posted pretax profit of EUR2.1 million on revenue of EUR6.7 million.
Chief Executive Lee Rochford said: "We are delighted to announce this strategic acquisition that further strengthens Arrow Global's market position in Portugal and adds valuable real estate asset management capabilities to the group.
"Norfin's first-rate reputation and expertise is highly complementary to our existing Whitestar operations."
Turning to Arrow's own performance, trading "continues to be strong", and it is on track to meet its annual target of GBP230 million to GBP240 million of portfolio purchases. Volumes were ahead of 2017 at the end of June, standing at GBP145 million.
Arrow is also on track to meet its mid-teens internal rate of return target, with the figure at 16% in the first half of 2018, while leverage is expected to fall by the end of 2018.
Rochford continued: "Trading in the second quarter has continued to be in line with expectations, with the positive pricing environment we noted in the first quarter continuing into the period and resulting in strong returns.
"We look forward to updating the market further on our performance at our interim results on August 30."
Shares were 1.8% higher on Thursday at a price of 252.50 pence each.
Related Shares:
ARW.L