Debt purchase and management specialist, Arrow Global, has reported a more than 200% increase in half-year profits. Pre-tax profits for the six months to June 30, were £32.5m, compared with £10.7m last year.

Total income of £177.7m was up from £166.9m, while core collections of £202.1m showed a 13.5% increase from £178m. During the six month period Gross Asset Management and Servicing (AMS) income increased 14.4% to £68.3m – 34.1% of gross Group income (H1 2018: 32.2%), with current assets under management (AUM) of £52bn. Free cashflow grew 28.1% to £115.3m, compared with £90m a year ago.

Chief Executive Lee Rochford said “These are a strong set of results reflecting the strength, breadth and quality of the Group’s business. All key financial metrics have improved on last year. We have continued to generate asset purchases across our markets at attractive expected returns.”

“Our AMS business continues to gather momentum, with further margin expansion enhancing our capital generation. We are now moving to establish broader third-party fund management business capabilities through the formation of AGG Capital Management Limited, which we believe has the potential to transform our business model.”

“In order to ensure maximum efficiency and flexibility within our operations, we have undertaken a group-wide cost review, which is now being implemented. This will support the delivery of our strategic objectives and improve operating leverage over time.”

“Strong cash generation remains an important characteristic of our business allowing us to invest for future growth, pay dividends and de-lever.  We remain confident in our ability to finish the year within our target leverage range of 3.0x-3.5x and to deliver on our broader medium-term financial objectives.”