Arrow Global returns to profit after strong second quarter

Lee Rochford

Debt management firm Arrow Global is back in the black after a strong second quarter performance.

The Manchester-headquartered group, which earlier this year agreed a £563m takeover deal by TDR Capital through its newly formed venture Sherwood Acquisition, reported funds under management (FUM) of €4.8bn billion at 30 June 2021.

That was up from €4.3bn six months ago.

It reported EBITDA before takeover costs of £61.3m, up from a loss of £100m for the same period last year.

Profits before tax and takeover costs was £22.9m, up from a loss of £135.9m in H1 20201.

However, the group said a £22.4m of takeover costs have been recognised leading to a statutory profit before tax of £500,000.

Arrow shareholders voted in favour of the recommended all cash offer by TDR Capital at the court and general meetings on 21 May with 93.8% of votes in favour of the deal.

Completion is subject to regulatory approvals and is expected by the end of Q3 2021.

Group CEO Lee Rochford said: “Arrow continues to build momentum, delivering a strong second quarter performance despite continued economic disruption in our European markets, and with most of our colleagues working from home.

“We remain focused on the execution of our capital-light strategy and are making excellent progress. The continued successful deployment of ACO 1 means we are on track to begin fundraising for our second fund as planned.

“I am also pleased that our AMS business continues to see strong demand for its services, with our reputation as a responsible servicer helping us continue to win new contracts.

“Arrow shareholders voted in favour of the recommended all cash offer by TDR Capital at the court and shareholder meetings on 21 May and we continue to work with TDR to progress regulatory filings to satisfy the remaining conditions to the acquisition, which is expected to complete by the end of the third quarter.

“As we look towards the future, Arrow’s proven track record as a leading investor and servicer means we remain well positioned in the large and growing European market, as economic dislocation generates new opportunities at increasingly attractive returns.”

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