12th Oct 2015 16:39
LONDON (Alliance News) - Arrow Global Group PLC Monday said it expects its full year earnings to be in line with expectations and said it remains confident in its future growth aspects, and said a group of directors and employees have proposed a placing following the expiry of the two year IPO lock-up agreement.
The debt purchase and management business company said it acquired debt portfolios for an aggregate purchase price of GBP97.1 million in the third quarter ended September 30, and has a "strong" fourth quarter pipeline that has GBP23.1 million "in final implementation", it said.
During the third quarter, 51% of its investments were made in the UK and the remaining 49% of investments were made in mainland Europe, all of which are "in line with target returns", it said.
The group's 120-month estimated remaining collections on purchased loan portfolios was up 6% to GBP1.51 billion at the end of September from GBP1.08 billion at the end of December 2014, whilst its 84-month ERC was up 6.4% to GBP955.1 million from GBP897.3 million.
"We expect overall full-year earnings to be in line with our expectations and remain confident in our future growth prospects," it said in a statement. The company will release its quarterly results on November 26.
In a separate statement Monday, Arrow said, following the expiry of the two year IPO lock-up, it has been instructed to issue 8.1 million existing shares in the company on behalf of directors, employees and former employees of the company via an accelerated bookbuild.
The amount of proceeds, the number of shares in the placing and the placing price will be decided at the close of the accelerated bookbuilding period.
Those 8.1 million shares represent a 4.6% stake in Arrow.
The people disposing of shares include Chief Executive Tom Drury, Chief Financial Officer Robert Memmott and Founder Zachary Lewy. The three of them still hold an 8.3% stake in the company following the transactions.
"The proposed placing by management, employees and former employees is an opportunity for them to rebalance their portfolios following the delivery of a successful IPO and two strong years of trading as a publicly listed company. The executive team retains significant holdings in the Company and remains fully committed to the business. The business continues to trade well, as demonstrated by the trading update released concurrently with this announcement," said the company.
Arrow shares closed down 1% to 271.75 pence per share on Monday.
By Joshua Warner; [email protected]; @JoshAlliance
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