Arrow Global hails ‘transformational year’

ARROW Global, the Manchester-based group which buys bundles of consumer debt and uses data and analytics to secure improved repayment rates than the original lenders, has reported sparkling annual results.

The group which floated on the main market last October said 2013 had been a “transformational year”, underpinned by success on the bond markets, the IPO and strong financial performance.

During the year, the company which has more than 100 staff at its headquarters on Booth Street in the city centre, acquired debt portfolios with a face value of £1.37bn for a purchase price of £101.3m.

The group now has total assets under management of £9.6bn, some £2bn more than the face value at the end of 2012.

Arrow said core collections had risen 44.1% to £127.8m, while adjusted EBITDA rose 44.7% to £89.6m and underlying pre-tax profits more than doubled from £14m to £33.5m.

Chief executive Tom Drury, said:”This has been a transformational year for Arrow Global, starting with the launch of our £220m senior secured notes in January, followed by our successful IPO in October and ultimately the achievement of our financial targets for the year.”

Looking ahead, he added: “With industry regulation set to migrate to the FCA on 1 April, we should see greater consistency for customers as buyers join creditors in the same regulatory regime. I am pleased to report that Arrow is well progressed in our preparation for this important change.

“Our expectation remains that we will grow purchases at or in excess of UK market growth. We expect the timing of these purchases to have a normal weighting towards the second half of the year. The business has a robust pipeline of portfolio acquisition opportunities, and whilst the market remains competitive, we believe, the outlook remains strong.”

He said the group expects to pay a maiden interim dividend this year.