30th Aug 2018 15:14
LONDON (Alliance News) - Arrow Global Group PLC on Thursday reported a "strong" performance in the first-half which saw a rise in profit and revenue, leading to a hike in its dividend.
In the six months ended June, Arrow Global more than doubled its pretax profit to GBP10.7 million from GBP4.9 million reported for the same period the year before.
Arrow Global said the increase was driven by "strong" income growth and business expansion.
Total income increased 11% to GBP166.9 million from GBP149.8 million - which was driven by both its Investment and Asset Management & Servicing businesses.
The credit management service provider increased its assets under management by 29% to GBP49.3 billion from GBP38.3 billion.
The company's core collections increased 15% to GBP178.0 million from GBP154.5 million - which in turn led to total income from portfolio investments increasing 8.6% to GBP125.5 million from GBP115.6 million.
Arrow Global upped its interim dividend by 25% to 4.0 pence each from 3.2p a year ago.
Looking ahead, the company said its trading continues to be "strong" and its expects to finish the year in line with market expectations.
Chief Executive Officer Lee Rochford said: "Momentum at Arrow remains strong. Our broad sourcing capabilities and operating platform have enabled the Investment Business to continue to achieve consistent returns, with unlevered net initial rate of returns in the mid-teens across a range of asset types."
"We believe we now have the optimal platform to position us well to generate strong earnings, cash flow and de-leveraging as we realise the full benefit of this footprint and the investments we have made to enhance efficiency," Rochford added.
Shares in Arrow Global were up 2.5% Thursday at 264.00 pence each.
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