4th Mar 2014 12:49
LONDON (Alliance News) - Debt purchaser Arrow Global Group PLC Tuesday said 2013 pretax profit increased 1.7 times as it expanded into new asset classes and saw an increase in core collections.
Arrow, which buys customer accounts from a range of businesses, including retail banks, credit card and telecommunications companies, reported a GBP21.0 million pretax profit, compared with GBP12.1 million in 2012. That 73% increase was ahead of the 44% increase in revenue to GBP94.7 million, said the firm, because of a 46% rise in operating expenses to GBP50.5 million and a 21.0% increase in finance costs to GBP23.2 million.
Revenue rose as Arrow Global expanded into UK student loans and second lien mortgage markets, and core collections increased to GBP127.8 million from GBP88.7 million.
Chief Executive Tom Drury described 2013 as a "transformational year" for Arrow Global, as it launched its GBP220 million senior secured notes in January and its initial public offering in October.
He said Arrow Global ultimately achieved its financial targets for the year and welcomed the oncoming regulation of the industry by the Financial Conduct Authority.
"With industry regulation set to migrate to the FCA on 1 April, we should see greater consistency for customers as buyers join creditors in the same regulatory regime. I am pleased to report that Arrow is well progressed in our preparation for this important change," Drury said in a statement.
Drury said his expectation remains that Arrow will grow purchases at or in excess of UK market growth.
"We expect the timing of these purchases to have a normal weighting towards the second half of the year. The business has a robust pipeline of portfolio acquisition opportunities, and whilst the market remains competitive, we believe, the outlook remains strong. We expect to pay our first interim dividend in 2014, which will be announced in our half year results," Drury said.
Arrow said it expects to pay its first interim dividend in 2014.
Arrow shares were Tuesday quoted at 255.75 pence, down 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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