Search Share Prices
Arrow Global revenues rise as core collections improve
Debt purchaser Arrow Global made saw revenues grow throughout the first quarter of its trading year as a result of an increase in core collections and a 19.9% increase in asset management income.
Arrow's revenue expanded 19.6% to £77.1m for the three months leading to 31 March, thanks largely to the capital-light asset management revenues boost to £18.9m.
Core collections improved 11.6% to £86.0m as Arrow's overall collections performance remained strong at 103% of original underwriting forecasts, demonstrating its "track record of prudent investment and portfolio servicing expertise".
Underlying profit after tax of £11.4m was up 10.3% year-on-year and earnings per share of 6.5p were 10.2% higher.
The group noted that after the integration of Parr Credit, its Italian asset, the structural backdrop for future growth remained attractive.
Chief executive Lee Rochford said, "The power of our differentiated model has meant that we have had another strong start to the year. Our sophisticated approach to capital investment and asset management, underpinned by our strong institutional client relationships and unique servicing capabilities, has meant that we have continued to purchase high volumes of portfolios at our required returns while maintaining the growth of our capital-light asset management revenues."
"I remain confident that we are favourably positioned to capitalise on future opportunities and we remain on track to deliver our financial targets for the year," Rochford added.
As of 0930 BST, Arrow shares had declined 3.78% to 356.50p.