28th Feb 2019 11:31
LONDON (Alliance News) - Arrow Global Group PLC on Thursday said its annual profit fell due to increased expenses and a gain on the sale of its Promontoria MCS Holding SAS associate the year before.
Shares in Arrow Global were up 7.7% at 193.60 pence on Thursday.
The company also hiked its dividend, declaring a final 8.7p per share dividend that takes the total dividend for the year up 12% to 12.7p per share from 11.3p per share.
The credit management services provider's pretax profit totalled GBP40.0 million in 2018, a drop of 21% from GBP50.6 million.
Key factors in this profit reduction were operating expenses, which increased 20% to GBP255.0 million from GBP213.1 million. Arrow Global also posted a GBP14.7 million gain from the sale of Promontoria in 2017, which did not repeat in 2018.
The company's total income was GBP361.8 million, up 13% from GBP319.1 million in 2017. This includes GBP269,404? million of income from its portfolio investments - up from GBP247.9 million - and GBP91.7 million of income from asset management and services, compared to GBP71.1 million in 2017.
Arrow Global has now completed its One Arrow investment programme, which began in 2017 and included office consolidations, IT investment, and a revision to the company's governance structure.
"2018 was an important year as Arrow largely completed the build-out of its pan-European platform through the 'One Arrow' programme. This positions the business to deliver superior returns in a differentiated asset class through its broad access to niche markets and distinct operating skillset," said Arrow Global Chief Executive Lee Rochford.
Rochford added that the company is "mindful of volatile market conditions and pockets of high competition" but is confident of achieving its goals.
"We see potential for further growth, strong investment returns and continued momentum in capital-light revenues," Rochford said.
Related Shares:
ARW.L