27th May 2015 09:54
LONDON (Alliance News) - Arrow Global Group PLC, a London-listed buyer and manager of debt portfolios, said Wednesday its first-quarter net profit more than doubled, keeping it on track to meet its expectations for the full year.
In a statement, Arrow Global said its net profit amounted to GBP5.2 million in the three months ended March 31, compared with GBP2.2 million in the corresponding quarter of 2014.
"We remain on track to deliver overall full-year results in line with our expectations, with growth supported by good visibility in our origination pipeline. We have GBP79.9 million of future investment already contracted, with GBP28.8 million of this coming in the remainder of 2015," Chief Executive Tom Drury said in a statement.
First-quarter operating profit rose to GBP14.4million from GBP8.9 million, as income from purchased loan portfolios increased to bolster revenue. That increase was partly offset by higher financing costs due to a eurobond issued to help fund Arrow Global's acquisition of rival Capquest in the fourth quarter of last year.
"We also made significant operational progress, reinforcing our market leadership in Portugal, with the formalisation of a strategic partnership with CarVal Investors and the acquisition of Whitestar and Gesphone. In the UK, we continued to rationalise our servicer panel to ensure greater oversight against a backdrop of enhanced regulation, and also to drive synergies from the acquisition of Capquest," Drury said.
The CEO said progress is being made as the company works towards full regulatory authorisation by the UK Financial Conduct Authority, with plans for a "landing slot" in the third quarter still an area of "key" focus.
The FCA became responsible for regulation of consumer credit from the Office of Fair Trading in April 2014.
Arrow Global shares were down 0.2% at 264.00 pence per share on Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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