Arrow announces latest results

Debt purchaser,Arrow Global Group has announced its results for the period ended 30 June 2018.

Commenting on the results, Lee Rochford, Group chief executive officer of Arrow Global, 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 IRRs in the mid-teens across a range of asset types. When combined with our capital-light asset management and servicing income, financial performance continues to be highly value accretive.”

“Since our IPO in 2013, we have grown significantly, establishing a pan-European footprint with market-leading positions across six key geographies. 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. Trading continues to be strong and we remain on track to finish the year in line with market expectations.”

Key highlights include:

• Continued strong growth and returns – core collections up 15.2% and adjusted EBITDA up 16.8%
• Underlying profit after tax up by 10.0% to £28.4 million
• Profit after tax up by £4.8 million to £8.5 million
• Underlying LTM ROE of 33.5% and an interim dividend up by 25%
• Strong investment underwriting performance at 103% of original forecast
• Successful build out of a pan-European platform providing a good runway for organic growth
• 29% growth in assets under management to £49.3 billion
• ‘One Arrow’ investment programme on track to complete by year end