Arrow Global has announced its preliminary results for the year ending 31st December 2016. The results showed a record year for organic portfolio purchases of £223.0 million (2015: £176.3 million). Purchased loan portfolio asset base and loan notes increased by 37.2% to £804.1 million (2015: £586.3 million*), which is reflected in the increased value of the 84-month ERC from £1,028.6 million to £1,339.1 million, up 30.2%
Other Highlights included:
Total revenue for the year was £235.9 million, an increase of 42.6% (2015: £165.5 million), driven by an increase in core collections to £286.0 million (2015: £218.5m), resulting in an increase in Adjusted EBITDA of 36.7% to £209.2 million (2015: £153.1 million)
Profit after tax of £26.3 million (2015: £31.7 million), and basic EPS of 15.1p (2015: 18.2p). These include a number of one-off items, principally the costs associated with restructuring the group’s long-term financing in September 2016 of £18.0 million
A record year for organic portfolio purchases of £223.0 million (2015: £176.3 million)
The year included the acquisition of InVesting B.V. (“Vesting”) in the Netherlands and Belgium and agreed the proposed acquisition of Zenith Service S.p.A., (“Zenith”) in Italy. These transactions coupled with the announcement to co-invest in the assets and servicing of the RNHB Hypotheekbank loan book in the Netherlands have enhanced our European mainland capabilities significantly
Commenting on the results, Lee Rochford, Group chief executive officer of Arrow Global, said: “2016 was a landmark year for Arrow. We ended the year a larger, stronger, more diverse business. Underlying profit after tax was 29% higher and we delivered strong returns, enhanced shareholder value and an increased dividend. During the year, we completed record organic purchases of £223 million with the majority sourced in off-market deals. In addition, we acquired Vesting in the Netherlands and agreed the purchase of Zenith in Italy.
“Our scale and reputation continue to provide a significant commercial advantage and we have started 2017 well, with a strong origination pipeline. We are confident in our objective of delivering high teens EPS growth and a progressive dividend policy, supported by ROE in the mid-20s, over the medium-term.”