Arrow Global says it is confident for the year ahead

Manchester-based debt purchase and management specialist Arrow Global recorded record portfolio investments of £263.4m in the year to December 31, 2018.

It also reported a record net operating cash flow, prior to portfolio investment, of £244.3m.

Profit after tax fell 24.9% from £39.9m to £30m.

But chief executive Lee Rochford said the group was pleased with progress made during the year, with an underlying profit after tax increases of 13.3% to £64.1m, underlying return on equity of 34.8%, and a dividend per share of 12.7p, which was up 12.4%.

He said: “2018 was an important year as Arrow largely completed the build-out of its pan-European platform through the ‘One Arrow’ programme.

“This positions the business to deliver superior returns in a differentiated asset class through its broad access to niche markets and distinct operating skillset.

“Within the period we were pleased with financial progress, showing strong cash generation, improved investment returns and a reduction in leverage ratios.

“At the same time, we exited a non-core geography through the sale of our small Belgian business and continued to add scale to our asset management and servicing platform, which ends the year at £52.6bn of assets under management.”

He added: “As we look to the year ahead, we are mindful of volatile market conditions and pockets of high competition, but remain confident in our ability to deliver the goals we outlined at our November 2018 Capital Markets Day.

“We see potential for further growth, strong investment returns and continued momentum in capital-light revenues.”