12th Mar 2020 10:55
(Alliance News) - Arrow Global Group PLC performed well in 2019, the company said on Thursday, with the outlook also confident.
Arrow Global buys and then manages non-performing loans from banks and specialist lenders.
For 2019, gross asset management & servicing income rose 5.9% to GBP140.1 million. Third-party AMS income was 2.9% higher at GBP94.4 million.
Manchester-headquartered Arrow Global's core cash collections increased by 7.5% to GBP442.3 million.
The company's pretax profit was 28% higher at GBP51.3 million, but the underlying figure fell 5.2% to GBP78.1 million.
Arrow Global is paying a final dividend of 8.7 pence per share. This means a total of 13.1p, up 3.1% from the year before.
"The group has continued to deliver against its priorities in 2019 in what was a pivotal year for the group's business model. Key operating metrics across the group performed well, and we achieved record free cash flow generation and record investment volumes while also maintaining returns at a consistently attractive level," said Arrow Global.
In December, Arrow Global unveiled a "transformational" EUR838 million fundraise to step up a new fund to invest into European credit. The firm is targeting funds under management of EUR2 billion by the end of 2020.
"We are excited by Arrow's future prospects and continue to see enormous opportunity to generate strong returns in our chosen markets. The launch of our fund management business is transformational for the group, allowing us to capture more of this opportunity while also growing our capital light earnings," said Chief Executive Lee Rochford.
"Our initial fundraise of EUR838.0 million was a milestone in our evolution to become a fully integrated alternative asset manager. We believe we can scale this business significantly over time and are continuing to target total funds under management of EUR2.0 billion by the end of 2020."
Shares were 11% lower on Thursday morning in London at a price of 160.00 pence each.
By George Collard; [email protected]
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